Settling of Daewoo split within the year: meeting of economic ministers

Railway Integrated Corporation is trying to normalize operations through a capital increase by the existing stockholder. At the same time, financial assistance amounting to a total of 530 billion won is being provided to Aeronautics & Space Industry, formed by the merger of three aeronautics companies. In addition, the dismantling of debt-laden Daewoo Corporation is scheduled to be settled within the year.

Financial Minister Jin Nyum, Industrial Minister Shin Kook-Hwan, Financial Supervisory Committee (FSC) chairman Lee Keun-Young and chief economic aide to president Lee Ki-Ho agreed to implement the above measures and foster cooperation among related ministries in a meeting of economy related ministers at Cheong Wa Dae on Tuesday.

Shin reported on the restructuring of the Railway Integrated Corporation and said officials had decided to convert a 25 billion won loan provided by Hyundai, Hanjin and Daewoo, sell the stakes in Daewoo owned by the Korea Development Bank and normalize its management. He also announced that a group of creditors related to the restructuring of the Aeronautics Integrated Corporation had decided to provide financial support by converting its contribution of 75 billion won, postponing payment of a 374.4 billion won loan and assisting in the raising of 80 billion won in fresh capital.