Summary of Proposed Investment
Project Number
9111
Company Name
HALIM AND CO., LTD.
Date SPI Disclosed
Jul 20, 1998
Country
Korea, Republic of
Industry
Agribusiness and Forestry
Status
Completed
Sector
Animal Slaughtering and Processing
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Sep 30, 1998
Signed : Oct 17, 1998
Invested : Nov 6, 1998
Project Description
Summary of Project Information (SPI)
| Project Name | Korea – Halim |
| Region | East Asia and Pacific |
| Sector | Food and Agribusiness |
Project No009111
Projected Board DateAugust 24, 1998
Company NameHalim
Technical Partner and/or Major Shareholders
Halim is today Korea''s largest and most efficient broiler producer, having some of the best production facilities in the world. With a workforce of over 1,000, the Company is the only fully integrated broiler producer in Korea, currently processing 270,000 chickens a day. Halim has 23% of Korea''s broiler market compared to 6% for its nearest competitor, and its brand is well recognized in Korea. The Company was founded by Mr. Hong-Kuk Kim, in 1978. Mr. Kim successfully opened up the Company in 1991 through a private issue. In July 1997, the Company’s stock became publicly listed. Mr. Kim and his immediate family retain 38% of the shares and full control of the Company.
Project Cost including proposed IFC investment
IFC is considering a US$20 million investment in the form of equity and quasi equity.
Location of project and Description of site
The company is located in Iksam, in the Cholla Province, about 300Km. south of Seoul. All its farms and production plants are located within the North Cholla Province.
Description of Company and Purpose of Project
Halim has asked IFC to assist it in restructuring and strengthening its balance sheet by injecting US$20 million in equity/quasi-equity to refinance short term and medium term loans. Due to the ongoing economic crisis and liquidity crunch, the Company has been obliged to rely on expensive short and medium term instruments to meet its working capital needs and refinance maturing loans. The Company is a success story in the Cholla region, an agricultural region traditionally deprived of investment funds by previous governments or foreign companies (the current President Mr. Kim Dae-Jung is from this area). Its network of more than six hundred loyal farmers (outgrowers) have benefited from Halim’s success deriving their primary or steady second income. The project is in line with IFC’s strategy for Korea in that it will support the financial restructuring of a medium size enterprise, negatively affected by the on-going economic crisis. IFC’s participation will also be crucial to entice other parties to inject additional equity to bring Halim’s debt to manageable levels.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of the project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed: air emissions and wastewater effluents; solid waste management and disposal; handling and storage of hazardous materials; use of CFCs in refrigeration equipment; hygiene practices in all facilities; fire protection and emergency response; and general worker health and safety. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Halim’s proposed project will meet World Bank environmental, health and safety policies and guidelines and requirements of the Government of Korea.
The is from the Public Information Center.
| Date SPI sent to PIC | July 20, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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