Hansol, Shinsegae Deny Relations with Saehan

The Hansol Group and the Shinsegae Department Store Group, both spin-offs of the Samsung Group, are denying they have any relations with the Saehan Group, which recently applied for a workout agreement. On May 24, Hansol and Shinsegae announced, "Rumors that Hansol and Shinsegae have invested in Saehan and provided payment guarantees for the group are completely false."

One Hansol Group representative said, "Only people ignorant of the laws governing the business world could believe something so absurd," adding, "When Hansol separated from the Samsung Group in 1991, it severed all payment guarantees and share-holding ties with Samsung affiliates." The Hansol representative also stated that "Hansol's main activities are its paper manufacturing business and information/telecommunications business. There are no cooperative business ties between Hansol and Saehan."

One Hansol Group source asserted, "Hansol, Shinsegae, and Cheil Jedang have been under independent management since their respective separations from the Samsung Group."

One Shinsegae Department Store executive director said, "Shinsegae has not provided payment guarantees nor capital to the Saehan Group," adding,"Shinsegae has no payment guarantees associated with the Samsung Group either."

One business sector source said, "According to fair trade laws, separated companies cannot support former affiliates." He added, "For example, the Hyundai Group can supply only limited capital to its affiliates, even if separation has only been partially completed." For example, when the Hyundai Investment Trust and Securities Co., Ltd. underwent its insolvency crisis at the end of April, Hyundai Motor Chairman Chung Mong-ku said, "This crisis has nothing to do with the Hyundai Motor Company. Hyundai Motor cannot help in any way."

by Ko Yun-hee