Daesung Affiliates Are Splitting From Group

Daesung Group's three main companies, Daesung Industrial Co., Seoul City Gas Engineering Co. and Taegu City Gas Engineering, are scheduled to become independently managed firms, according to the group's flagship company.

Daesung Industrial, from which Daesung Group originated, decided Tuesday to sell back a 26 percent stake in Seoul City Gas and a 63 percent stake in Taegu City Gas.

The three sons of founder, Kim Soo-keun, have been feuding over control of the group since Mr. Kim's death in February.

As a result of the rearrangement in ownership, Kim Young-dae, the eldest son, will take control of Daesung Industrial, Kim Young-min, second son, will manage Seoul City Gas and Kim Young-hoon, third son, will control Taegu City Gas.

"In return for Daesung Industrial selling stocks in the two city gas companies, Seoul City Gas and Taegu City Gas also plan to sell back shares in Daesung Industrial, which the two gas companies started buying at the beginning of this year," a senior Daesung official. "The sell-backs will be complete in June."

Seoul City Gas and Taegu City Gas will buy back their stocks at around 30,000 won ($19) per share from Daesung Industrial, and Daesung Industrial will buy back its shares at a similar price, company officials said.

by Ko Yun-hee