KDB will create value for Daewoo builder first

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KDB will create value for Daewoo builder first

The state-run Korea Development Bank (KDB) will not rush to sell Daewoo Engineering & Construction and will focus on improving the builder’s value, the head of a KDB affiliate said Wednesday.

Lee Dae-hyun, chief executive of KDB Investment, the affiliate responsible for corporate restructuring, told reporters that potential bidders would be interested in buying Daewoo Engineering if it raises its corporate value.

“Our top priority for this year is to increase the corporate value of Daewoo Engineering,” Lee said.

The KDB, a key creditor of Kumho Asiana Group, purchased a 50.5-percent stake in Daewoo Engineering in 2010 to help the debt-ridden conglomerate restructure its finances.

Some Kumho Asiana subsidiaries have struggled with debt since early 2010 due to a severe cash crunch sparked by the group’s purchase of Daewoo Engineering in 2006.

Daewoo Engineering posted a net profit of 49.4 billion won ($41.8 million) in the first quarter of this year, down 55.7 percent from a year ago.

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