Hyundai Engineering resorts to brinkmanship with banks

Hyundai Engineering & Construction managed to swing a stay on all debt repayments until year-end and is now pushing for W180 billion of fresh loans. Can Korea afford not to lend the money?

Hyundai Engineering Constructions HEC message to the Korean government and creditor banks in recent days has been clear without further liquidity support the company will fold, taking with it the current fatade of normality in the Korean economy. To drive home this message, HEC froze payments to its 19,000 employees for one day. The move worked and the company's 12 domestic creditor banks agreed to halt all debt repayments until year-end.

A day later, HEC decided to push...

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