Gov't pushes to sell bailed-out firms

SEOUL, Feb. 18 (Yonhap) -- The government plans to sell its stakes in four
bailed-out firms, including Hynix Semiconductor Inc., that were rescued during
the 1997-98 economic meltdown, the state financial watchdog said Thursday.
"While taking into account merger and acquisition markets and economic
situations, the government plans to first unload its stakes in four out of 12
bailed-out companies," the Financial Services Commission (FSC) said in a report
to the National Assembly.
The companies include Daewoo International Corp., Daewoo Electronics Corp.,
Daewoo Shipbuilding & Marine Engineering Co. and Hynix Semiconductor.
Creditors of Hynix failed on Friday to draw bidders for a 28.07 percent stake of
the world's second largest chipmaker, even after extending the deadline twice,
raising the chance of a block trade.
The planned stake sale also comes amid a government attempt to privatize Woori
Finance Holdings Co., the country's No. 2 financial services company, and Korea
Development Bank.
The FSC said the government plans to decide how to sell Woori Finance within the
first half. The regulator said the government is open to various options to sell
a 50 percent stake plus one share in Woori, but market watchers speculated that a
merger with another financial company is highly likely, given the size of a deal.
sooyeon@yna.co.kr
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