January 21, 1998 in Social Responsibility News

SAMSUNG Group to Take Up Drastic Restructuring Measures

SEOUL, Korea - January 21, 1998 - Samsung Group, a US$92.7 billion Korea-based conglomerate, today announced a series of bold corporate reform measures to bolster the group's competitiveness in the face of South Korea's financial turmoil. The blueprint refocuses on improving the group's financial structures and transparency of business management. The group also said it plans to focus on three to four major industries and sell or cease operations of unprofitable companies.
In a bid to improve the transparency of corporate accounts, Samsung Group will introduce internationally accepted consolidated financial statements beginning in fiscal year 1999 for all affiliated companies. The group's target is to list Samsung Electronics Co. (SEC), a world leading electronics maker, on the New York Stock Exchange (NYSE) around 2002.

By 1999, Samsung will totally abolish group-wide cross-debt payment guarantees that already are the lowest among Korean conglomerates (14% in April '97). Within five years Samsung aims to lower its debt-to-equity ratio to 150% from the current 267% (as of April '97). This will be done by selling unprofitable units and by maintaining only essential assets for core activities.

Samsung is currently working with a foreign investment-banking firm to carry out the restructuring from an institutional investor's perspective. Samsung Group will eventually focus on three to four major industries. Giving the current economic situation in Korea it will be more desirable to sell any


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