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IS FINALLY BEGINNING TO PAY OFF SOME OVERDUE CONTRACTS AND IRAQ, WHICH HAS OFFERED TO BARTER WITH CRUDE OIL BECAUSE IT DOES NOT HAVE ANY READY CASH, DUE TO UNITED NATIONS TRADE SANCTIONS.
HYUNDAI CLAIMS THAT IT CAN BUILD THE HONGKONG BRIDGE MUCH MORE CHEAPLY THAN ITS RIVALS, BECAUSE IT CAN BUY CHEAP STEEL FROM ITS OWN MILLS, AND CAN PREFABRICATE THE STRUCTURES BEFORE SHIPPING THEM TO THE TERRITORY FOR ASSEMBLY. THE GROUP ALSO HAS A WORKING ARRANGEMENT WITH A CHINESE COMPANY TO PROVIDE CEMENT, SAND AND GRAVEL FROM THE MAINLAND. WITH SUCH FORMIDABLE EXPERTISE, CONNECTIONS AND RESOURCES, HYUNDAI WOULD SEEM TO BE A SAFE BET FOR THE BIG CONTRACT IN MAY, BUT THERE ARE POLITICAL AS WELL AS FINANCIAL HITCHES WHICH ARE LIKELY TO PROVE FATAL TO ITS BIDS.
THE RESERVATIONS ABOUT HYUNDAI RELATE TO THE COMPANY'S 76-YEAR OLD FOUNDER AND CHAIRMAN, MR CHUNG JU-YUNG, WHO HAS BECOME EMBROILED IN A BITTER DISPUTE WITH KOREA'S RULING DEMOCRATIC LIBERAL PARTY AND PRESIDENT MR ROH TAE-WOO, WHOSE JOB THE INDUSTRIALIST COVETS. MR CHUNG HAS DECLARED THAT HE WILL BE A CANDIDATE FOR THE PRESIDENCY IN THE AUTUMN ELECTIONS.
THE HYUNDAI BOSS OPENLY CRITICISED THE RULING PARTY, AND FORMED THE RIVAL UNIFICATION NATIONAL PARTY, WHICH WON 10 PER CENT OF THE NATIONAL ASSEMBLY SEATS LAST MONTH, AND HELPED DEPRIVE THE GOVERNMENT OF AN OVERALL MAJORITY.
HYUNDAI IS PAYING A HEAVY PRICE FOR MR CHUNG'S PERCEIVED DIS- LOYALTY TO THE POLITICIANS WHO MADE IT POSSIBLE FOR HIS CONGLOMERATE TO PROSPER. ONLY LAST WEEK, THE KOREAN AUTHORITIES IMPOSED PUNITIVE FINES ON HYUNDAI FOR ALLEGED TAX EVASION. TWO FORMER PRESIDENTS AND FOUR MIDDLE-RANK MANAGERS HAVE BEEN ARRESTED AND CHARGED WITH INVOLVEMENT IN AN ALLEGED TAX DODGE, AND INVESTIGATORS ARE EXPECTED T
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BRING CHARGES AGAINST MR CHUNG'S SON, MR CHUNG MONG-HUN. HYUNDAI MERCHANT MARINE HAS BEEN ORDERED BY THE GOVERNMENT TO PAY DOLLARS 271 MILLION IN ALLEGED UNPAID TAXES.
THE STATE-OPERATED KOREAN DEVELOPMENT BANK, WHICH DIRECTS GOVERNMENT LOANS AND SUBSIDIES TO STRATEGIC BUSINESSES, EARLY THIS WEEK ABRUPTLY CANCELLED CREDITS TO THE GROUP. THERE IS SPECULATION ABOUT WHETHER THE GOVERNMENT WILL GIVE HYUNDAI'S HIGHLY SUCCESSFUL TRADING ARM AN ANNUAL AWARD FOR EXPORTS, FOR WHICH THE COMPANY IS LIKELY TO QUALIFY.
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