Hyper Corporation (CEO Lee Sang-seok) announced on the 9th that it will resolve capital erosion and improve its financial structure through a free capital reduction.
Hyper Corporation disclosed yesterday that the board of directors has decided on a free capital reduction at a ratio of 8 to 1. The purpose of this free capital reduction is to cover accumulated deficits and improve the financial structure.
Upon completion of the free capital reduction, the capital will decrease from the existing 53.3 billion KRW to approximately 6.7 billion KRW, and the number of listed shares will decrease from 106.68 million shares to about 13.34 million shares. The capital erosion ratio, which was 67.2% based on the consolidated financial statements at the end of last year, will be completely resolved after the capital reduction.
In addition to this capital reduction decision, Hyper Corporation plans to strengthen business stability and financial soundness through business restructuring and reorganization. The company already announced last month that it will sell its subsidiary Platform934 (formerly Hyper Prism) for 4 billion KRW.
A company official stated, "We have inevitably decided on the free capital reduction to promptly resolve the reason for designation as a management item due to capital erosion," adding, "After resolving capital erosion and improving the financial structure, we will proceed with business restructuring and stabilization efforts to enhance corporate value in earnest."
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