DHIM Sale Sparks Concerns Over Clash Between Labor and Management

As over 10 domestic firms participated in bids for Daewoo Heavy Industries & Machinery (DHIM) expiring with a May 18 deadline, a fierce takeover is going on.

Related to this matter, the DHIM office and production-line labor union announced, “We will block the sale even if physical force has to be mobilized.” The Democratic Labor Party (DLP) is planning to support this throughout the 17th National Assembly, and there are concerns for a delay in the sale schedule and a clash between labor and management.

The Korea Asset Management Corporation (KAMCO), DHIM’s largest shareholder, announced yesterday, “At the preliminary bidding closed at 5 p.m., a total 10 foreign and domestic firms have participated. These firms will inspect DHIM over the course of 30-45 days. With the formal bidding taking place in July, an investor will be chosen for preferential negotiations.”

Prior to this, the DHIM labor union held a press conference at the DLP’s central headquarters in Seoul Youido, and said, “With a strike on May 21, 4,400 labor union members will take their all-out struggle in front of the National Assembly to block the inspection into the company’s assets and debts, the board of directors, and the general meeting of shareholders to be held afterwards.”

The Union added, “The bidding closed yesterday, but our union was not actually permitted to participate, and we had no choice but to oppose the sale. We will keep our door open for conversation with the government regarding this.”

Song Tae-kyung, director of the policy department in the DLP, who was present at the press conference, stressed, “The DLP will continue its political support to DHIM’s union, and have its lawmakers positively take part in this matter in the 17th National Assembly.”

Meanwhile, KAMCO is sticking to its original schedule and is planning to sell the DHIM in bulk, and if some problems arise, divide it into civilian and defense industries for sale.

Doosan, a Pantech consortium, and Hyosung participated in the bulk sale, and Rotem Company and the Tongil Heavy Industries-Samyoung consortium participated in the defense industry division bidding.

The Tongil Heavy Industries-Samyoung consortium announced that they turned in a bid proposal guaranteeing a takeover in employment and the labor union’s participation in management.

Keuk-In Bae Jong-Koo Yoon bae2150@donga.com jkmas@donga.com