“Korean bankers are fretting that Apple may shun the country’s bond market after a local newspaper revealed that the secretive US phone maker had recently attempted to invest some of its vast cash pile in a local bank deal,” Frances Yoon reports for Reuters. “The Maeil Business Newspaper reported on October 12 that Apple had placed an order to buy US dollar bonds of KEB Hana , one of South Korea’s largest banks in asset terms, but that the issuer had chosen not to accept the bid.”
“The article infuriated Korean bankers, who said Apple was ‘extremely sensitive’ about revealing how it managed its cash,” Yoon reports. “‘This is not a small issue. Apple could stop buying Korean paper entirely,’ said a Korean banker, who did not participate in the KEB Hana deal. ‘This is super crazy.'”
“The Maeil later revised its article, eliminating Apple’s identity,” Yoon reports. “Concerns over Apple’s reaction stem from a similar case in 2014, when a Hyundai Capital Services executive told reporters that Apple had participated in its recent $500 million issue of three-year floating-rate notes. That, bankers said, upset Apple so much it refused to take part in any future bond issues from the company.”
“‘Apple never bought Hyundai Capital’s bonds again. Hyundai even went to Reno several times, but Apple would never meet them,’ said a banker close to Hyundai. Apple, with its corporate headquarters in Cupertino, California, manages much of its cash and treasury operations through a subsidiary, Braeburn Capital, in Reno, Nevada,” Yoon reports. “Apple’s total cash, cash equivalents and marketable securities reached a record $238 billion as of September 24, according to a 10-K filing, making it the world’s biggest corporate investor.”
Read more in the full article here.
MacDailyNews Take: In a perfect world, Apple should have been freezing out South Korea completely until the country gets a handle on their thieving chaebol and stops the rampant patent and trade dress infringement. Oh wait, that’s impossible for South Korea, since the country is basically owned by Samsung.
Make ’em pay, Luca and Tim, make ’em pay!
Korea Fair Trade Commission clears Samsung’s use of standard-essential patents against Apple – February 27, 2014
Convicted patent infringer Samsung allegedly pressures Korean newspaper to kill coverage of anti-Samsung film – February 21, 2014
South Korea, the Republic of Samsung – December 10, 2012
Welcome to South Korea, the ‘Republic of Forgery’ – September 11, 2012