By Kang Seung-woo
Staff reporter
The Korea Exchange Bank (KEB) and other creditor banks are likely to stop providing new loans to Hyundai Group in retaliation for the conglomerate's repeated refusal to sign up to a KEB-led plan to improve its financial structure.
Sources said Wednesday that Hyundai hadn't agreed with the KEB's assessment of its financial health and restructuring recommendations by the final deadline set for that day.
This is the third deadline the group has failed to meet following two previous ones set for June 15 and 25.
Creditors, comprised of 13 banks, are expected to announce the retaliatory measure today on the basis of a meeting attended by the Korea Development Bank (KDB), Shinhan Bank, Nonghyup and KEB.
"Creditor banks are determined to cut fresh lending to Hyundai Group," a banking representative said.
The creditors plan to add pressure; if Hyundai Group, the parent group of the country's biggest bulk carrier Hyundai Merchant Marine and Hyundai Asan, continues to refuse to submit a reform plan.
Unsatisfied with KEB's reform program last month, Hyundai Group has demanded that KEB be replaced as the main creditor and called for a new financial assessment.