Daewoo Announces Restructuring Plan

Daewoo, the third largest chaebol group in Korea next to Hyundai and Samsung, announced its restructuring plan on April 19, which mainly concentrates on reducing its massive debt.
Kim Woo Joong, chairman of Daewoo group and the Federation of Korean Industries(FKI), in a press conference stated that it would additionally sell 750 million dollars worth of affiliates in the near future other than the already reported 2.3 billion dollars in asset sales.
Kim said that Daewoo is holding talks with Japanese Mitsui group about selling Daewoo Heavy Industries' Okpo shipbuilding facilities for 409 million dollars.
He also mentioned, 'After finishing the entire process, Daewoo's subsidiaries will reduce 8 major companies out of 34, and the group will have a triangled stucture with trading, finance, and automobile sectors. This will rest upon a more stable financial basis.'
In addition, it is negotiating to sell off its 35-percent stake in Kyobo Life Insurance to American-based Morgan-Stanley, and its Daewoo Communications, the Hilton Hotel, Diners' Card, and Sandong Cement are on the auction block to anybody seriously interested in purchasing them.
The government has recently criticized Daewoo for not fulfilling its restructuring promises, and warned that further financial punishment awaits the group, if there is no precise public announcement forthcoming.
Hwashik Bong : trojans@joongang.co.kr