Prices not sole factor in sale of bailout firms: policy lender

SEOUL, Oct. 29 (Yonhap) -- South Korea's state-run policy lender said Thursday it will consider not only prices but also potential buyers' business capabilities when it sells stakes in bailout companies.

"Other than prices, there is also the need to consider bidders' capacity (to buy
a firm) and their authenticity when selling major bailout companies," Ryu
Jae-han, president of Korea Finance Corp., said in a news conference marking the
corporation's inception.
Korea Finance began operations on Wednesday after the state-run Korea Development
Bank (KDB) was split into two entities -- Korea Finance and a holding firm, which
will retain KDB's banking business.
Korea Finance took over KDB's stakes in state-run companies and bailout firms
including chipmaker Hynix Semiconductor and Hyundai Engineering & Construction
Co., South Korea's biggest builder.
Ryu said the agency plans to sell companies that have made a turnaround -- Hynix
Semiconductor and Hyundai Engineering "as soon as possible."
Korea Finance holds a 6.2 percent interest in Hynix Semiconductor and an 11.2
percent stake in Hyundai Engineering. Korea Aerospace Industries is 30.1 percent
owned by the agency.
Recently, Hyosung Corp. became the sold bidder for a 28.07 percent stake in the
world's second-largest memory chip maker. But doubts have grown about Hyosung's
capacity to finance the deal, valued at nearly 4 trillion won (US$3.33 billion).
Speaking about the Hynix sale, Ryu said that Korea Exchange Bank, as the main
creditor bank handling the case, is not in position to make comments on market
speculation.
He also said the agency will not discriminate against foreign investors but it
will investigate their motives.
sooyeon@yna.co.kr
(END)