Feeds

South Korea launches Hynix probe

Who was responsible for its losses?

  • alert
  • submit to reddit

Having faced European Union and US Department of Commerce probes, Hynix is now under investigation by the South Korean government.

A report in South Korean paper Chosun Ibo yesterday claimed the Korea Deposit Insurance Corp. (KDIC) - the government's corporate liquidation agency - wants to see whether past and present Hynix employees are responsible for the huge losses the company has suffered. The paper cited a KDIC official as its source.

KDIC's interest in the matter arises from the public money it provided Hynix's creditor banks after Hynix allegedly passed KRW 730 billion ($635 million) of losses on to its creditors.

The implication is that if individuals are found to have been responsible for the losses, they will be billed by KDIC for the sums involved.

KDIC's action forms an interesting addendum to the EU and DoC investigations. Those probes concluded that Hynix had received illegal government aid in the form of a bail-out package provided by its banking creditors. Since many of those banks were part-owned by the South Korean government, the rescue funding amounted to state help.

Hynix rejects such a verdict. It says that its rescue plan was backed by many banks who have no connection to the South Korean administration. Possibly, but the KDIC's use of public money allegedly to help creditors cope with Hynix losses casts the memory maker's relationship with the South Korean government in new light. ®

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.