The South Korean government will seek to wrap up the sale of Daewoo International Corp in the first half of next year in a bid to recoup public funds, the national financial watchdog said today.
Creditors of Daewoo International, led by the state-run debt clearer Korea Asset Management Corp (KAMCO), are looking to sell a 68 per cent stake in the company valued at around $1.87 billion.
The government is seeking to sell bailed-out firms swiftly in order to retrieve public funds, the Financial Services Commission (FSC) said in a statement after holding a public fund oversight committee meeting.
POSCO, South Korea's leading steelmaker, has expressed its interest in bidding on Daewoo International, a former unit of the now-defunct Daewoo Group that is focused mainly on energy development.
The FSC said the government will seek to unload its 5 per cent stake in electricity monopoly Korea Electric Power Corp next year. It also plans to sell its 16 per cent stake in Woori Finance Holdings Co as soon as possible as part of efforts to privatise the financial holding company, according to the watchdog.
The state-run Korea Deposit Insurance Corp holds a 66 per cent stake in South Korea's Number 2 financial services company after unloading a 7 per cent interest on November 24 through a block trade. Excluding a 50 per cent interest plus one share, the agency plans to sell the remaining 16 per cent via a block trade next year.
