[2022 National Audit] Yoon Hee-sung, CEO of KDB, "Hanwha Group Affiliate Loans Not for Succession"

[Image source=Yonhap News]

[Asia Economy Reporters Song Hwajeong and Bu Aeri] Yoon Heeseong, President of the Export-Import Bank of Korea, stated that the loans to Hanwha Group affiliates are not intended for succession purposes.

On the 19th, during the National Assembly's Planning and Finance Committee audit, Yoon responded to Justice Party lawmaker Jang Hyeyoung's allegations of preferential loans by the Export-Import Bank to Hanwha, saying, "The loans are to support the hydrogen industry, not to assist succession."

Lawmaker Jang pointed out, "The 100 billion KRW loan executed by the Export-Import Bank in August this year to Hanwha Solutions and Hanwha Energy was used as succession funds for Hanwha." According to Jang's data, the Export-Import Bank lent 50 billion KRW each to Hanwha Energy and Hanwha Solutions in August under a three-year maturity condition. Hanwha Energy and Hanwha Solutions used these funds to purchase the remaining shares of their subsidiary Hanwha Impact (formerly Samsung General Chemicals), in which they hold a 75.21% stake. The loans provided by the Export-Import Bank are part of the Financial Services Commission's 'K-New Deal Financial Support' program, which offers low-interest loans covering up to 90% of actual required funds.

Lawmaker Jang stated, "The purchase of the remaining shares was the final step of the big deal between Hanwha and Samsung in 2015. Originally, Hanwha Impact was supposed to be listed by April this year. If not listed, Samsung was to exercise a put option on the remaining shares," adding, "Hanwha gave up the listing last year and agreed to pay around 1 trillion KRW to acquire the remaining shares. The reason for withdrawing the listing is said to be related to succession." She further added, "Hanwha Energy, which received the loan from the Export-Import Bank, is 100% owned by Hanwha's three sons."

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