Hynix will get no help from Korean govt – Deputy PM
You're on your own now
The Korean government intends to leave Hynix to its own devices and will not interfere with the troubled memory maker, the country's Deputy Prime Minister and Minister of Finance and Economy, Jin Nyum, said this past weekend.
"Hynix Semiconductor was separated from Hyundai Group, and is not mixed with Hyundai units, meaning the company will stand up to any market decision," he said during a TV interview.
Korean businesses have often been helped by interventionist governments in the past, motivated by a desire to sustain the nation's economy. Hynix, with a proportion of its stock held by overseas investors, can clearly expect no such aid from the Korean government, according to Jin's comments.
Hynix has been struggling of late, having been hit very hard by the decline in global semiconductor sales - and the collapse of memory prices in particular. It also carries a massive debt, to the tune of 5.7 trillion won ($4.43 billion) around its neck. While the company is profitable - just - its earnings are being turned to losses by that debt - an effect the company is feeling all the more keenly because of the year's shrinking sales. Last quarter, Hynix's revenues were down 20 per cent.
The company is selling off or spinning off non-core operations in a bid to streamline its business and - again - reduce its debt. ®