By Yoon Ja-young
Staff Reporter
A total of 27 state-owned enterprises, including Korea Development Bank (KDB) and Industrial Bank of Korea (IBK), will be privatized while Korea National Housing Corporation and Korea Land Corporation will be merged. Meanwhile, 12 public enterprises, including the Korea Tourism Organization, will be restructured.
The government announced the first-phase plan Monday to privatize and restructure 41 state-owned firms, including ones where public funds were injected.
According to the announcement, 27 firms will see privatization. KDB will be divided into the Korea Development Fund (KDF) and a shareholding company. The shareholding company will be privatized, and KDF will specialize in financing small businesses. KDB subsidiaries KDB Capital and KDB Asset Management will be also be privatized.
The government also plans to sell its stake in IBK, on top of privatizing its subsidiaries ― IBK Capital, IBK Credit Information, and IBK System.
It will sell 49 percent of its stake in Incheon International Airport Corporation, which will be seeking a strategic alliance with a foreign airport corporation. Currently, it is 100 percent owned by the government.
The government also plans to sell 14 firms where public funds were infused ― Daewoo Shipbuilding and Marine Engineering, Ssangyong Engineering Construction and others will be sold as soon as possible. The Financial Services Commission will come up with a concrete plan this month.
Korea Asset Investment Trust, Korea Real Estate Investment Trust, Kyongbuk Tourism Development Corporation, Korea Construction Management Corporation, and New Seoul Country Club will also be privatized.
Korea National Housing Corporation and Korea Land Corporation will be merged to reduce business overlapping. Concrete plans will be made available after a series of public hearings, but labor unions threatened to nullify the plan.
Twelve state-owned businesses will be restructured. Korea Tourism Organization, for example, will sell off its non-core businesses, such as duty free shops, golf courses, and resorts.
Korea National Oil Corporation and Korea Resources Corporation will also be slimmed down. National Pension Service and Korea Workers' Compensation & Welfare Service will hand over premium collecting services to the National Health Insurance Corporation. KOTRA, which had task overlap with Small Business Corporation, will be engaged in overseas affairs only.