Government, U.S. Investor Close To Deal On Hyundai

The negotiations between the government and the U.S.-based American International Group, Inc. on the purchase of controlling stakes in three financial affiliates of the Hyundai Group are nearly complete, Korea's chief financial regulator said Tuesday.

Lee Keun-young, chairman of the Financial Supervisory Commission, speaking before the foreign press corps in Seoul, said talks are now centered on the price for Hyundai Securities Co. "As soon as there is an agreement on that," he said, "it will in effect mean the sales negotiations are over."

The other affiliates slated for sale are Hyundai Investment Trust & Securities Co. and Hyundai Investment Trust Management Co.

"We have agreements on everything except the price for Hyundai Securities," Mr. Lee said.

AIG first showed interest in acquiring the Hyundai financial companies in June 2000, when it reached an understanding with Hyundai to acquire Hyundai Investment Trust & Securities.

The government entered the negotiations early this year on the request of AIG. Mr. Lee said earlier in the year that talks to sell Hyundai Investment Trust were wrapping up.

The government has agreed to AIG's request that Seoul acquire 1 trillion won of stakes in the Hyundai companies. AIG plans to invest 1.2 trillion won in the firms.

by Huh Kwi-sik