Gov't to sell stakes in state-invested companies

(ATTN: RECASTS headline, lead to clarify)
SEOUL, Jan. 15 (Yonhap) -- The government will sell stakes in state-invested
firms worth a combined 3 trillion won (US$2.2 billion) as part of efforts to
improve their financial soundness and expand investment in core businesses, the
finance ministry said Thursday.

State-run institutions, including power monopoly Korea Electric Power Corp., will
push to sell their interests in 111 firms starting this year, according to the
ministry. The ministry reviewed a total of 273 small state-invested firms for
sale.
"The process will start as soon as possible but it will be pursued based on
market conditions," Vice Finance Minister Bae Kook-hwan told reporters. The sale
plan will be finalized at a meeting to be held on Jan. 22, he added.
The move is the fifth of the government measures aimed at enhancing overall
competitiveness in the public sector, which has frequently come under fire for
dragging its feet over reforms and using taxpayers' money to compensate for
losses.
The government had said that it will push to privatize, consolidate and
streamline 109 state-run institutions, while improving management efficiency at
69. Around 19,000 jobs in the public sector will be trimmed over the next three
to four years.
"Such state-invested firms have been cited as a hotbed of laggard management and
waste of investment as they are not closely related to the business that its
stake holders are doing," Bae said.
"We plan to use the proceeds from the sale, estimated at 4.6 trillion won, to
enhance overall competitiveness in the public sector and induce it to focus more
on its core business areas," he added.
kokobj@yna.co.kr
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