KAMCO to sell stake in bailed-out firms by 2012

SEOUL, April 14 (Yonhap) -- South Korea's state-run debt clearer Korea Asset
Management Corp. (KAMCO) said Tuesday it plans to sell its stakes in bailed-out
companies, including Daewoo Shipbuilding & Marine Engineering Co., by 2012 as
part of efforts to retrieve public funds.
In a report to the parliament, KAMCO said it plans to unload within three years
its stakes in six companies that received rescue funds in the aftermath of
1997-98 Asian financial crisis.
According to the plan, KAMCO will determine the timing of the sale of its 19.1
percent stake in Daewoo Shipbuilding, the world's third-largest shipbuilder,
after consulting in the second half with the main creditor, the state-run Korea
Development Bank (KDB).
The sale has been stalled since KDB decided to scrap a deal to sell the
shipbuilder to Hanwha Group in late January.
The agency said it will also sell its stake in Ssangyong Engineering &
Construction Co. after 2010.
KAMCO, established in late 1997, bought 111.3 trillion won (US$84 billion) in
distressed assets following the Asian financial meltdown, and has retrieved 43.2
trillion won so far.
Since late last year, the agency has purchased bad debts worth 1.7 trillion won
related to property loans extended by local savings banks and will buy part of
4.7 trillion won in such loans that are feared to go sour from banks and other
financial firms in the first half.
sooyeon@yna.co.kr
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