Jae-Moo

Thanks for the information, but would appreciate if you would direct your 
communication with Kim & Chang through me. 

Regards
Matt

---------------------- Forwarded by Matthias Lee/SIN/ECT on 07/24/2000 03:40 
PM ---------------------------


Jae-Moo Lee@ENRON
07/24/2000 09:55 AM
To: "skhong (Suhn-Kyoung Hong)" <skhong@kimchang.com>
cc: matthias.lee@enron.com, Michelle Lee/Corp/Enron@Enron, Mike 
Dahlke/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject: Re: OTC commodity derivative  

Dear Ms. Hong,

Thank you very much for the information.  

I had a chance to talk to Hyundai Oil regarding the report requirement issue 
as well as other business issues.  According to Hyundai Oil, they always put 
2 to 4 deals together, days or sometimes weeks after the deals have been 
made, each time they file a report  to BOK.   Such ex post facto package 
report is acceptable to BOK as far as the deals do not fall into one of the 2 
categories specified in the FX Transaction Regulation (deals with option 
premium higher than 20% or deals with room for illegality).   In fact, the 
number of oil paper transactions that Hyundai Oil has done is more than 20, 
and Hyundai Oil did not have any problems getting the reports filed with the 
BOK.   It sometimes took 1 week and sometimes 2 to 3 days, and Hyundai Oil 
did not really care how long it would take because both Hyundai and the BOK 
understood that the reports were (or had to be) a formality to be made for 
the deals already done.   

Other companies including SK Corp., Samsung and LG that we contacted use 
their Singapore branch as a vehicle for legal documentation (although Seoul 
HQ makes decision) and do not have to file such reports.  The reason for 
using their Singapore branches is not the report requirement hassle but their 
strategic and organizational issues, they said.

Regards,

Jae-Moo




"skhong (Suhn-Kyoung Hong)" <skhong@kimchang.com> on 07/21/2000 06:10:39 PM
To: <jlee5@enron.com>, <Matthias.lee@enron.com>
cc:  

Subject: OTC commodity derivative


We contacted the responsible officers of the BOK and confirmed that the BOK 
received 7 or 8 reports since April last year (when the rules changed) 
regarding OTC commodity derivative transactions and all of them were filed by 
Hyundai Oil Refinery in connection with oil derivatives.  It appears those 
reports were accepted by the BOK.  The review and processing of the reports 
would generally take 1 or 2 weeks.  Regards,



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