By Kim Tae-gyu
Staff Reporter


The trade union of Hanaro Telecom, Korea’s second-biggest fixed-line telecom carrier, Monday threatened to strike if management carries out foreign shareholders-led layoffs.

``Management hinted at a recent meeting that it might cut jobs to tide over current difficulties in the telecom industry,’’ said Hanaro Telecom union leader Kim Jeong-kyu. ``Our options include a strike,’’

``We will not accept any restructuring attempts affecting union members, whether firing workers or encouraging them to leave the company through retirement bonuses,’’ Kim said. He expects layoffs to begin as early as next month.

Hanaro, which is currently under the control of a consortium led by American Investment Group (AIG) and Newbridge Capital, has more than 1,500 employees, with about 1,300 being union members. Its recently-acquired broadband carrier Thrunet has some 220 on its payroll.

Kim accused the U.S.-based investors of trying to conduct massive layoffs to boost share prices by reducing costs and raising short-term corporate value.

``AIG and Newbridge are basically speculative funds and their only goal is to cash in capital gains from their investment in us. They seem to have no interest on the long-term development of our company,’’ Kim claimed.

AIG and Newbridge Capital spent roughly $500 million for 39.6 percent of Hanaro share in 2003. They channeled $600 million more to the then cash-strapped firm in the form of syndicated loans.

They bought a total of 182.8 million Hanaro stocks at 3,200 won a share but its price had dropped to 2,685 won at the closing of last week.

A Hanaro spokesman denied unionists’ assertion that massive job cuts are imminent, saying nothing has been fixed yet.

However, management has given a host of signals that it will reduce Hanaro’s 1,500-plus workforce in the not-so-distant future.

The layoff rumors started swirling after former president Yoon Chang-bun tendered a resignation in early August, a year ahead of the end of his tenure.

Yoon became non-executive chairman of the broadband operator, an ambassadorial role, and senior executive vice president Kwon Soon-yub became acting CEO.

The company said that Yoon’s resignation in early August was voluntary but at a meeting with reporters on Sept. 2, Information-Communication Minister Chin Dae-je indicated Yoon had resigned due to conflict with foreign investors over restructuring.

Under the leadership of Kwon, who is expected to officially take the reins of Hanaro next month, Hanaro dismissed 25 out of a total of 55 executives.

The number of executives is likely to drop further, as the U.S. investors look to slash the top-level workforces more depending on their performances.

Experts point out that reducing the number of executives had been widely regarded as the first restructuring step by foreign investors in preparation for putting the company up for sale.

``Hanaro’s foreign shareholders will conduct a substantial cut in the firm’s workforce to prop up its struggling share price,’’ said Kim Kyung-mo, an analyst at Mirae Asset, basing his belief on the assumption that AIG and Newbridge want to recoup their investment by slimming Hanaro and Thrunet to boost share prices.

voc200@koreatimes.co.kr