Another major corporate sale might fail

Since the International Monetary Fund supervision of the Korean economy, the resulting merger negotiations with foreign companies of non-viable Korean companies have hit some snags.

Many experts have singled out Korea's near non-existent skills and ability for international negotiation expertise as the greatest factor and have voiced their concerns that Korea might be handed the short end of the stick.

Sources in the financial industry said Sunday, following the failed sale of Daewoo Motor to a foreign company, that the Nabors consortium, which signed the sales contract for Hanbo Steel, has failed to deposit the purchase fund Sept. 30, as agreed.

As such, Hanbo Steel, which had been one of the major factors leading to the foreign currency crisis three years ago, might face a failed sale as has Daewoo Motor.

"The Nabors consortium has failed to deposit the purchase proceeds of US$480 million by Sept. 30, according to the sales contract," an official at the creditor bank overseeing the sales said Oct. 1.

Accordingly, Korean court authorities have dispatched a position to the Korea Asset Management Corp. stating that in case of a fallout, the court would not accept the Hanbo Steel request for court protection while looking for another perspective buyer.