State-owned Korea Development Bank is to set up a KRW1 trillion ($800 million) private equity fund in order to help troubled South Korean conglomerates compete in the global market, the Korea Times reports.
The CEO of KDB, Min Euoo-Sung, announced at a press conference this week that the fund would buy the non-core assets of struggling conglomerates and that dramatic corporate restructuring was necessary in order for Korean businesses to compete with international companies during the ongoing economic crisis.
According to the Korea Times, the fund will be launched in the first half of this year, with an initial size of KRW1 trillion ($800 million).
Min also announced at the press conference that KDB is considering taking over a local bank in order to strengthen its deposit base ahead of its planned privatisation. The South Korean government intends to reduce its stake in KDB and its affiliates in the next five years.
D.C.