In an effort to stem losses, Hanaro will issue $350 million in notes

Hanaro Telecom Inc. will issue 300 billion won ($253 million) worth of short-term notes to provide for a possible liquidity problem, said Yoon Chang-bun, 49, the newly appointed chief executive of the company, at a press conference yesterday. Hanaro also plans to hold a shareholders meeting in mid-September and to pursue another share offering. Hanaro’s large shareholders, LG Group, Samsung Electronics and SK Telecom, are expected to buy the short-term notes, Mr. Yoon said. “Right after the extraordinary shareholder meeting on Tuesday, we discussed the issuance of commercial paper with the representatives of large shareholders,” Mr. Yoon said. “They pledged that they will address the problem.” Hanaro, the second largest high-speed Internet service provider in Korea, had attempted to raise 500 billion won by selling new shares as a way to pay back 356 billion won in debts that are due this year. The company also plans to bid for a smaller rival, Korea Thrunet Co., which was put under court receivership in March. But at Tuesday’s meeting, shareholders rejected the plan, pushing the firm into a liquidity crunch. “In order to have a stable financial structure for the long term, we must either attract foreign capital or issue new shares,” Mr. Yoon said. “We will draw up measures and present the new plan to shareholders within six weeks.” When asked about Hanaro’s relations with LG Group, its largest shareholder, Mr. Yoon said, “Even if we do not become a part of LG Group, we will strengthen our ties through such steps as co-developing new telecommunications service products.” When submitting a bid to take over Korea Thrunet Inc., which must be done by August 25, Hanaro will also send a letter of investment commitment by a foreign or domestic investor to prove its capability to meet the price. Mr. Yoon said that he set the business direction of Hanaro in fixed-line, high-speed Internet service and local calls, and will add wireless Internet to Hanaro’s portfolio as a new core division. The firm will sell less profitable businesses, he said. “Workers at the divisions to be restructured will be transferred to other divisions within the company,” Mr. Yoon said, adding that he would try to minimize job losses. by Kwon Hyeok-joo