INI Consortium (INI Steel-Hyundai HYSCO Consortium) signed a memorandum of understanding (MOU) June 1 to acquire Hanbo Steel and launched a full-scale work necessary to take over the troubled steelmaker. INI Consortium signed the MOU that includes such items as the retention of the current employees at Hanbo Steel for more than three years and an agenda for inspection on the steelmaker as well as the final contract, after paying to the steelmaker May 31 a guarantee (45.5 billion won) equivalent to 5% of its bid price (910 billion won). Prior to the MOU signing ceremony June 1, Na Suk-hwan, the president of Hanbo Steel said, 'We regret our failures in the past attempts, but are very glad that INI Steel has become to take over Hanbo Steel.' Lee Young-do, the president of INI Steel who made a greeting address on behalf of INI Consortium at the ceremony said, 'We appreciate the fair evaluation and right judgment made on the bid documents and feel responsibility for the development of domestic steel industry. We will make a contribution toward the development of thesteel industry by normalizing the operation of Hanbo Steel within the earliest possible date.' As the MOU was sealed June 1, the final contract will be inked by the end of July. If the final contract is made, all the procedures of Hanbo Steel sale that include the revision to the corporate restructuring plan and the approval by creditors thereon will finish around the end of August. Even if INI Consortium makes a downward adjustmentof its takeover money by 5% within the maximum range through its detailed due diligence, the sale amount of Hanbo Steel would reach 864.5 billion won, and in case that Hanbo Steel's retained money of 200 billion won (taking into consideration its expected sales result from May through August in addition to the account receivable, even though the present retained money stays at about 170 billion won) is added thereto at the actual period for the handover of the company to INI Consortium, the total amount that the creditors of Hanbo Steel can share would exceed 1 trillion won. ctpark@snmnews.com