1. Company names changed to DENSO PS and DENSO PS Electronics due to the capital increase in DENSO equity

(1) Overcoming the currency crisis and change

The currency crisis began on November 21, 1997 with a shocking special press conference by Minister of Finance and Economy, Lim Chang-yeol. South Korea became an internationally indebted country with a total of US $55 billion in debt but narrowly avoided a national default.

However, the International Monetary Fund (IMF) demanded strict adjustment of the country’s economic structure, and large, medium-size, and small enterprises, as well as commercial and industrial companies, went bankrupt one after another. Banks went bankrupt, shares went to waste, and unemployment flooded the streets.

The currency crisis caused by the government’s failed economic policies and excessive investment by large enterprises engulfed the lives of the people, but in the end, they overcame it with the power of a people on the brink. In August 2001, the entire nation banded together to lead the “gold-collecting campaign”, which led the country to leave the IMF’s management system for the first time in about four years.

As the situation in South Korea entered a hopeful phase of economic recovery, POONGSUNG Electric, unable to act as expected due to the currency crisis, also had to forge a new path through changes.