Seoul  - Leading shareholders of money-losing Hynix Semiconductor Inc on Friday denied market rumours of a Hynix capital reduction.

Instead, they revealed a possible attempt to raise capital for the world's second-largest manufacturer of computer memory chips after Samsung Electronics Co.

Creditors said that despite the revenue loss, Hynix stands on a risk-free capital base that may invite a capital raise.

"We've never discussed capital reduction," the shareholders' committee said in a statement.

Hynix has been talking with its five top shareholders, who own 36 per cent of its shares, among them the Korea Exchange Bank and the Korea Development Bank.

The committee said it was considering whether to fund Hynix with about 800 billion won (591 million dollars) to support its liquidity.

Shareholders said funding options may include asset-secured loans, issuing new shares and selling idle assets.

Hynix has racked up four straight quarters of net losses amid a long slump in the semiconductor industry.

Hynix announced on Sunday that it would carry out an intensive cost-reduction drive, including staff cutbacks, to survive the downturn in the memory chip market and the global economic slowdown. (dpa)