Public firms to shed assets, stakes in affiliates to fuel privatization

SEOUL, April 16 (Yonhap) -- South Korea's state-run firms will shed their
non-essential assets and stakes in affiliates to streamline operations and fuel
privatization of the public sector, the government said Thursday.
The Ministry of Knowledge Economy said 24 corporations have set up detailed sales
plans to deal with unnecessary holdings by 2012 as part of the public sector
revitalization plans announced last year.
Large state-controlled businesses including Korea Electric Power Corp. (KEPCO),
Korea Gas Corp. (KOGAS), Korea National Oil Corp. (KNOC) and the Korea
Trade-Investment Promotion Agency (KOTRA) will sell all or part of their shares
in affiliates and business ventures, according to the ministry.
KEPCO plans to shed 20-40 percent of its controlling stakes in Korea Power
Engineering Co. and Korea Plant Services and Engineering Co. over the next four
years, and will sell 28 percent of its 38.8 percent holding in LG Powercomm.
KOGAS and KNOC also plan to sell off holdings in GS Fuelcell and Daehan Oil
Pipeline Corp, with KOTRA to give up its 26 percent stake in the Busan Exhibition
and Convention Center.
The ministry, in charge of the country's industrial policies and investment
promotion, said public companies will also sell non-essential real estate and
shares in recreational ventures that are not directly related to its core
operations.
"Companies like Kangwon Land Corp and Mine Reclamation Corp. will dispose of
shares in resorts, and other public companies will shed land and apartment homes
set aside for employees," a ministry official said.
Sales of public company holdings may trigger demand in local mergers and
acquisitions and the real estate market, he said, and make it easier to privatize
some public companies -- generating revenue for the state and reducing government
outlays.
yonngong@yna.co.kr
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