Dongkuk to Acquire Hanbo Steel

There is a strong possibility that Dongkuk Steel will acquire the bankrupt Hanbo Steel Company. A high-ranking official in the government said on January 17, 'Among domestic steel manufacturers, only Dongkuk is interested in buying Hanbo Steel. Some foreign companies have shown interest in Hanbo but their asking price was too low.'
He continued, 'The government requested other domestic companies to participate in the bidding but none did it. There is no alternative unless the foreign companies revise their offerings.'
Hanbo's creditor banks and Dongkuk plan to negotiate the details of the acquisition. A source at one of the creditor banks stated, 'Dongkuk's conditions are a seven-year grace period followed by payments spread out over a 13-year period. Our counter-offer will request that Dongkuk pay part of the money in cash up-front.'
Dongkuk is reported to be interested in two different areas of Hanbo Steel's operations. Recently, Dongkuk raised hundreds of billions of won through restructuring moves including the shutdown of its Pusan factory.