By Kang Seung-woo
Ryu Jae-han, president of the Korea Finance Corp. (KoFC), offered to resign Tuesday over controversy surrounding the much-anticipated sale of Hynix Semiconductor.
“I will take responsibility for the fuss surrounding the sale as undecided details about the sale conditions for Hynix Semiconductor were revealed to the media,” Ryu, who took office in October 2009, said in a news release. His term as KoFC CEO lasts until October next year.
Ryu’s potential exit comes amid speculation that Hynix’s creditors are attempting to provide incentives, including extra credit, to a would-be buyer that bids for large portions of the chipmaker’s available stakes without the issuance of new shares.
This suggested a reverse in creditors’ original stance, which was to consider issuing new shares to help the chipmaker improve its financial strength and ease the investment burdens for potential suitors.
Early last month, top mobile carrier SK Telecom and shipbuilding conglomerate STX Group submitted preliminary bids for a 15-percent stake in the world's second-largest memory chip maker.
Ryu held a news conference last week where he attempted to quell the rumors. He claimed that a prospective buyer would be allowed to sell up to 10 percent of its stake, but it will be permitted to issue new shares only when it offers to bid for at least half of the 15 percent.
The creditors of Hynix plan to select a preferred bidder in September and complete a deal by November. Korea Exchange Bank (KEB) owns the largest stake in the chipmaker at 3.42 percent, followed by Woori Bank and KoFC, which own 3.34-percent and 2.58-percent stakes, respectively.