By Lee Hyo-sik
Staff Reporter
Kumho Asiana Group is planning to invest 2.92 trillion won this year, up 28 percent from 2007, to expand operations at home and abroad, as well as increase research and development.
In its investor relations (IR) session Monday, the country's seventh-largest family-run conglomerate also said it expects to generate 11.7 trillion won in additional revenue over the next five years by integrating the newly acquired Korea Express into the group.
Kumho Asiana is seeking to earn 26.4 trillion won in revenue this year, up 27.3 percent from 2007 while realizing a 1.45 trillion won profit, up 5 percent. Last year, it generated 20.8 trillion won revenue and a 1.37 trillion won net profit.
``This year, we will spend more than 500 billion won to help Kumho Tire and other group units expand their business overseas and establish a stronger foothold,'' said Oh Nam-soo, president of the strategic management division at Kumho Asiana Group.
Oh also said during the IR session that the group will emerge as a globally competitive logistics giant as it has acquired Korea Express, the country's largest ground-based logistics company, which has extensive delivery networks at home and abroad.
``We expect to create more than 11.7 trillion won in additional revenue over the next five years from combining the delivery company with other logistics-related group units, including Asiana Airlines,'' he stressed.
Earlier on the same day, Kumho Asiana signed a formal contract to purchase a controlling stake in Korea Express for 4.1 trillion won. It is acquiring 24 million new shares, equivalent to 60 percent of the expanded stocks.
In January, the Seoul Central District Court selected the Kumho Asiana consortium ― Asiana Airlines and Daewoo Engineering & Construction ― as the preferred bidder to acquire a controlling stake in Korea Express, saying Kumho Asiana scored the highest in its evaluation of bids tendered by four business groups. The group beat out Hanjin Group, STX Group and Hyundai Heavy Industries
Korea Express attracted a greater deal of attention from a number of business groups as it has an extensive logistics network at home and abroad. Also, prices of its real estate holdings near train stations and bus terminals across the country have sharply increased over the past few years.
When sales talks first surfaced last year, the price was estimated at less than 2 trillion won. But the heated competition to acquire the company pushed up its value sharply.
The company generated 1.3 trillion won in sales last year with 70 billion won in operating profits. Its assets are valued at 1.5 trillion won.
It has been under court receivership since June 2001 after it failed to pay debts inherited from its former parent Dong-ah Construction, which went bankrupt. Last September, the court allowed the firm to be acquired by a third party.