By Kang Seung-woo
The chief of the Korea Finance Corporation (KoFC) said that funding ability and vision are as important as the sales price in choosing a buyer for Hyundai Engineering & Construction (HEC). KoFC is the largest shareholder of HEC with an 11.12 percent stake.
“Although the sales price is a prime factor, we will take a close look at the buyer’s funding capability and management vision as well,” KoFC President Ryu Jae-han said in a press conference in Washington last week during his visit to the annual meeting of the International Monetary Fund (IMF).
“At this moment, neither of the two potential bidders ― Hyundai Group and Hyundai-Kia Automotive Group ― are in a leading position in the bidding race for HEC,” he added.
KoFC was spun off from the Korea Development Bank (KDB) last October as the first step of the state-run lender toward privatization and assumed the public-financing functions of the KDB.
Ryu, former head of the Korea Housing Financial Corporation, said Hyundai Group’s emotional advertisements will not affect the sales process. “Frankly speaking, we are embarrassed a little bit by the advertisement,” Ryu said.
Hyundai Group, which is now competing with Hyundai-Kia Automotive Group to take over the nation’s No. 1 builder issued an advertisement that said it hopes that the nation will have the world’s No. 1 auto maker, implying the Hyundai-Kia Group’s bid was is not related to its regular business.
In addition, Hyundai Group, one of the country’s leading industrial companies, launched a TV commercial, featuring the late Chung Ju-yung, the founder of the group, and Chung Mong-hun, the former chairman and late husband of Chairwoman Hyun Jeong-eun to hint that the group is the legitimate successor of the founder.
“KoFC is looking to sell the builder at the highest price, regardless of the advertisements,” Ryu said.
Meanwhile, he said the KDB needs to become competitive before being privatized.
“We plan to privatize KDB as soon as possible, but the state-run bank should have competitiveness first,” he said.
“After the Woori Financial Group’s process of privatization is completed, I think KDB will be next.”