ID :
73124
Fri, 07/31/2009 - 12:13
Auther :
Shortlink :
https://www.oananews.org//node/73124
The shortlink copeid
Kumho Asiana to step up efforts to improve financial health: new chairman
By Nam Kwang-sik
SEOUL, July 31 (Yonhap) -- The new head of South Korea's Kumho Asiana Group,
which owns the nation's second-largest carrier Asiana Airlines Inc., said Friday
that he will expedite efforts to improve the group's financial health.
Park Chan-bup, the new chairman of the group, also said he would work to
stabilize the cash-strapped group's capital base and seek out new growth engines.
"After classifying our business portfolio on the basis of profitability, I will
boldly close down unprofitable businesses to create a more stable management,"
Park said in his inaugural address.
Kumho Asiana has been dogged by growing concerns over its liquidity condition
since it bought a 72.11 percent stake in Daewoo Engineering & Construction in
June 2006 for 6.42 trillion won (US$5,20 billion), 3.5 trillion won of which was
funded by banks and other financial firms.
At the time, the group offered a put-back option under which it promised
financiers that it would buy back the builder's shares by December 2009 if the
stock price fell below 32,000 won.
Daewoo Engineering shares hovered above 30,000 won in late 2007, but have
continued to slide on concerns about a slowdown in the construction sector. They
closed up 1.98 percent to 12,850 won in Thursday's trading.
Last month, Kumho Asiana said it will sell its stake in Daewoo Engineering &
Construction and other assets in an effort to ride out a cash shortage.
Park, who has worked with Kumho Asiana for more than 40 years, served as vice
chief of the group's airline division that has been plagued by rumors of a family
feud and a cash crunch in the wake of its multi-billion-dollar purchase in 2006
of Daewoo Engineering & Construction.
Park was chosen as new chairman of the troubled Kumho Asiana on Tuesday after two
brothers who have jointly run the group stepped down amid an apparent family feud
over control of the country's eighth-largest conglomerate.
Park Sam-koo, then Kumho Asiana chairman, said he was resigning from management
together with his younger brother, Park Chan-koo, who has headed the group's
chemical division. The elder Park said he would continue to serve as an honorary
chairman. The two are the third and fourth sons of the group's late founder Park
In-cheon.
The new chief executive officer is unrelated to the outgoing executives, despite
their sharing the same surname.
ksnam@yna.co.k
(END)
SEOUL, July 31 (Yonhap) -- The new head of South Korea's Kumho Asiana Group,
which owns the nation's second-largest carrier Asiana Airlines Inc., said Friday
that he will expedite efforts to improve the group's financial health.
Park Chan-bup, the new chairman of the group, also said he would work to
stabilize the cash-strapped group's capital base and seek out new growth engines.
"After classifying our business portfolio on the basis of profitability, I will
boldly close down unprofitable businesses to create a more stable management,"
Park said in his inaugural address.
Kumho Asiana has been dogged by growing concerns over its liquidity condition
since it bought a 72.11 percent stake in Daewoo Engineering & Construction in
June 2006 for 6.42 trillion won (US$5,20 billion), 3.5 trillion won of which was
funded by banks and other financial firms.
At the time, the group offered a put-back option under which it promised
financiers that it would buy back the builder's shares by December 2009 if the
stock price fell below 32,000 won.
Daewoo Engineering shares hovered above 30,000 won in late 2007, but have
continued to slide on concerns about a slowdown in the construction sector. They
closed up 1.98 percent to 12,850 won in Thursday's trading.
Last month, Kumho Asiana said it will sell its stake in Daewoo Engineering &
Construction and other assets in an effort to ride out a cash shortage.
Park, who has worked with Kumho Asiana for more than 40 years, served as vice
chief of the group's airline division that has been plagued by rumors of a family
feud and a cash crunch in the wake of its multi-billion-dollar purchase in 2006
of Daewoo Engineering & Construction.
Park was chosen as new chairman of the troubled Kumho Asiana on Tuesday after two
brothers who have jointly run the group stepped down amid an apparent family feud
over control of the country's eighth-largest conglomerate.
Park Sam-koo, then Kumho Asiana chairman, said he was resigning from management
together with his younger brother, Park Chan-koo, who has headed the group's
chemical division. The elder Park said he would continue to serve as an honorary
chairman. The two are the third and fourth sons of the group's late founder Park
In-cheon.
The new chief executive officer is unrelated to the outgoing executives, despite
their sharing the same surname.
ksnam@yna.co.k
(END)
