Daewoo Engineering unionists to launch sit-in strike

By Nam Kwang-sik
SEOUL, Nov. 9 (Yonhap) -- The union leadership of South Korea's Daewoo
Engineering & Construction Co. said they will begin a sit-in strike late Monday
to protest a possible sale of the troubled builder's controlling stake to
"foreign speculative funds."
The labor union of Daewoo Engineering, a construction unit of Kumho Asiana Group,
said the strike at its headquarters in Seoul is aimed at preventing the group
from selling the stake to "overseas speculative capital."
On Oct. 5, Kumho Asiana came up with a shortlist of four candidates to buy a
50-percent stake plus one share in Daewoo Engineering without revealing their
names and the sale prices citing a confidentiality clause.
Late last month, the union said the four candidates include U.S.-based AC
Development Inc. and the Abu Dhabi Investment Authority, a sovereign wealth fund
owned by Abu Dhabi of the United Arab Emirates.
"Kumho Asiana and KDB are bent only on hastily completing the sale despite the
fact that the foreign funds are speculative in nature," the union said.
Apart from the strike, the union said it will hold a rally Wednesday to call for
Kumho to proceed with the sale in a more prudent manner.
The group plans to close final bids for the stake on Nov. 18 and then pick a
prime bidder with an aim to finalize the sale before the end of the year.
Kumho has been plagued by cash shortages since it bought a 72.11 percent stake in
the builder in June 2006.
ksnam@yna.co.kr
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