South Korea’s Mirae Science (formerly Haan Corp.), firm well known for steam cleaners invented by housewife-turned-businesswoman Han Kyung-hee, is put under a workout program after suffering from losses for several years in a row amid a lack of hit products.

According to multiple industry sources Wednesday, the firm’s largest debtor Industrial Bank of Korea(IBK) put Mirae Science under a corporate workout program late last month in compliance with the country’s “Coporate Restructuring Promotion Act.” It informed the Financial Supervisory Service (FSS) of its plan to embark on the workout agreement of Mirae Science and is carrying out due diligence that will last for the next three to four months to decide whether to come up with measures to put the firm back on the track or liquidate it.

An IBK official said Mirae Science that is classified as credit level C will be given an opportunity to co-manage the workout program until its operation becomes normalized, despite its unfavorable financial situation, after taking into account the firm’s self-rescue plan and brand power.

A group of financial institutes including IBK, Woori Bank and KEB Hana Bank have lent a total of 25 billion to Mirae Science.

Mirae Science is founded in 1999 by Han Kyung-hee, who invented steam cleaners that have sold over 10 million units in the country since its market debut in 2003. However, the firm has had limited success amid a lack of follow-up hit products, and its attempt to expand its business realm by adding cosmetics and water purifier businesses failed, adding additional woes to the company.

After peaking at 97.6 billion won in 2009, the firm’s sales have remained in red. Last year, the firm changed its name to Mirae Science from Haan Corp. in an attempt to seek to make another leap forward.

By Jin Young-tae

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]