By Kim Yoo-chul
Staff Reporter
Hynix Semiconductor, the world's second-biggest maker of computer memory chips, which recently failed to find a buyer, is now engaged in a "merry-go-round" search for a new chief executive.
The creditor group of Hynix, currently led by Korea Exchange Bank (KEB), has confirmed that four executives within the firm were chosen as candidates for the top spot.
They are executive vice president Choi Jin-seog, executive vice president Park Sung-wook, senior vice president Kwon Oh-chul and the chief financial officer Kim Min-chul.
Analysts say the competition will reflect a battle between financial experts and candidates with expertise in semiconductors.
"As far as I know, candidates who have more finance-oriented histories are expected to get more credit considering the stalled stake sale process," a high-ranking industry source told The Korea Times, Sunday, asking not to be identified.
Choi is a former chief technology officer (CTO), while Park is leading the company's research center after leading its U.S. factory.
Kwon handled its marketing team and was a former chief financial officer (CFO). Kim, who joined Hynix after gaining experience at Samsung Corning, has held the CFO position since last year, when he took over for Kwon.
"Park and Kwon are among the candidates that Hynix's six creditor banks are considering, though Choi may present a challenge," the source added.
"Intense talks over ways to sell the stakes will be discussed after the CEO appointment," an official at a creditor bank said.
A Hynix spokesman, Park Hyun, declined to comment. Representatives at KEB also refused to give any details on the current screening process.
The four candidates weren't available for comment.
The new chief executive will be chosen at a board meeting on March 5 and shareholders will need to approve the appointment at a meeting slated for the end of March.
Creditors earlier decided to replace current CEO Kim Jong-kap, citing the end of his three-year term that began in March 2007.
Kim significantly helped Hynix return to the black. Unfortunately, Hynix had failed for the second time in three months to find a buyer for the 28 percent stake worth about $3.1 billion.
The failure forced the creditors to seriously review the possibility of selling between 8 and 10 percent of their shares.
"I think that could have prompted the change. The government hopes to finish the stake sale process of Daewoo International and Daewoo Construction as well as Hynix ― all of them rescued from bankruptcies with public funds ― in 2010," the source said.
Hynix has been on a stable track in boosting its profit thanks to healthy demand for electronic goods. It recently reported its biggest quarterly profit in three years in the fourth quarter thanks to rising chip prices.
"There will be more players in the global chip market. This means just having a chip-making business isn't strategic. A contract-based foundry business is much more profitable," an LG Group official said.
South Korea's LG Electronics, which has long been seen as a likely bidder, is understood to be reluctant to take over Hynix because it already runs a cyclical LCD business.