It was a dark day for 64-year-old business tycoon Douglas Hsu (
Along with several other businessmen, Hsu -- chairman of Far Eastern Group (遠東集團) and a man who is proud of and known for his exquisitely forged ties with political heavyweights -- was indicted for two years and six months for forgery and breach of trust over the Pacific Sogo Department Store (太平洋崇光百貨) scandal.
Stressing that he was surprised by the verdict, the once daring and energetic magnate appeared extremely upset at a press conference called on Monday evening to reiterate his innocence.
"I know the moral principles of propriety, justice, integrity and shame (
Wearing a gold color tie, Hsu admitted that all the colors in the press conference had been carefully arranged to avoid giving any political associations.
"After all, we deal with business, not political games," he said with a deep sigh, a reaction one would least expect from him since Hsu always gives an impression of strength and confidence.
As the eldest son of his father Hsu You-hsiang's (徐有庠) second wife, Hsu inherited the family business established by the elder Hsu, which has now expanded to cover a wide range of sectors, including textile, cement, retail, finance, petrochemicals, hotels, transport and even telecommunications.
Far Eastern Group's assets surpass NT$1.07 trillion (US$32.3 billion), with 45,000 employees. Eight of its 191 companies are listed firms. It raked in over NT$360 billion in sales last year.
Hsu is surprisingly attentive to details, even for such a huge conglomerate. It is said that even the dance steps models perform during press conferences and commercials must obtain his approval.
A graduate of the University of Notre Dame and holding a master's degree in economics from Columbia University, Hsu is known as a workaholic, fueled by his passion for work. Even his voice is powerful and energetic, fully demonstrating his straightforward personality.
On the sideline of one press conference held early last year to launch the group's bonus point collection card, Hsu was bombarded by one reporter's questions about Pacific Sogo Department Store's disputes with Cathay United Bank (國泰世華銀行) over the issuance of the retailer's membership credit cards.
His smiling face suddenly changed. Hsu looked straight into the reporter's eyes, saying "There's no problem [with the bank]. Don't constantly talk about bad things, OK?" The venue was quiet for five seconds before another reporter popped out a question.
Hsu also well knows his appearance can bring the maximum effects for new products. Perhaps because of his long period of study in the US, he is fond of dressing up as different characters to boost media coverage.
In several promotional activities he was James Bond and an American football player; he put on a floral-patterned shirt for catwalk shows and acted as a chef cooking in front of cameras.
At press briefings, unlike many other bosses who stand still and give speeches in a flat voice, Hsu grabs the microphone, moving around on the stage talking jubilantly like a singer whipping up the crowd. Reporters are entertained by his "performances." "A shrewd businessman" is the comment most frequently used to describe him. This includes his efforts to build up relations in political circles.
After Far Eastern Group took over the management of Pacific Sogo early in 2003, Hsu invited current Presidential Office Secretary-General Mark Chen (陳唐山), former presidential office deputy secretary-general Chen Che-nan (陳哲男) and the first family's former doctor Huang Fang-yen (黃芳彥), who all maintain close ties with President Chen Shui-bian (陳水扁), for a banquet.
He then announced in front of them the appointment of Chung Chin (鍾琴), former Cabinet spokeswoman, as the department store's first chairwoman. Giving the impression that the government was on his side, at Christmas the same year, Hsu invited Wu to switch on the Christmas tree lights at the Far Eastern Plaza Hotel.
However, the freeway electronic toll collection (ETC) dispute that erupted early this year became Hsu's first major setback since he took over the Far Eastern Group nearly three decades ago.
The nation's first ETC system is based on a build-operate-transfer (BOT) contract, which means that contract winner Far Eastern Group has the government as its partner.
But the flawed selection procedure, pricey on-board units motorists required to enjoy speedy toll collection services, and what consumer groups criticized as unfair contracts for drivers have triggered a backlash from all directions and even allegations of corruption by lawmakers.
Under pressure, the government demanded that Far Eastern Electronic Toll Collection Co (遠通電收), a joint venture where Hsu's group controls 55 percent, slash retail prices for on-board units although the firm complained about losses.
The impasse remains especially after the Administrative Supreme Court voided a partnership between the government and Far Eastern Electronic in August, citing an unfair bidding process.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
PRESSURE EXPECTED: The appreciation of the NT dollar reflected expectations that Washington would press Taiwan to boost its currency against the US dollar, dealers said Taiwan’s export-oriented semiconductor and auto part manufacturers are expecting their margins to be affected by large foreign exchange losses as the New Taiwan dollar continued to appreciate sharply against the US dollar yesterday. Among major semiconductor manufacturers, ASE Technology Holding Co (日月光), the world’s largest integrated circuit (IC) packaging and testing services provider, said that whenever the NT dollar rises NT$1 against the greenback, its gross margin is cut by about 1.5 percent. The NT dollar traded as strong as NT$29.59 per US dollar before trimming gains to close NT$0.919, or 2.96 percent, higher at NT$30.145 yesterday in Taipei trading
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