Hyundai Electronics Initiates Global Cash Management System
Hyundai Electronics Industries Co., Ltd. (HEI) and Bank of America, N.A announced that HEI has implemented a Global Cash Management System with services provided by Bank of America. HEI is understood to be the first Korean multinational company that has committed to manage liquidity on a global and real time basis. Cash management of all HEI overseas operating subsidiaries will be centrally coordinated to ensure more efficient utilization of its global financial resources, with Korean operations to be integrated into the global system once Korean foreign exchange regulations permit. As one of the new initiatives introduced by Dr. Chong-Sup Park, who became HEI President and CEO in April, cash flow management has become a top management focus with the ‘global free cash flow’ as the performance measure for all business units. Global Cash Management is a major step toward HEI’s successful implementation of such an initiative. As the first step, HEI launched a Notional Pooling System, for its overseas subsidiaries to balance their cash positions globally. The ultimate goal is to implement Global Treasury Management including credit lines and foreign exchange positions in the near future.