Listing of Public Corporations on the Stock Market Could Expand

Some public corporations, including Korea Express Corporation and Incheon International Airport Corporation, will resume their attempts to be listed on the stock exchange. A successful listing will help the government secure financial resources for large-scale national projects while at the same time adding a few more blue chips to the country’s stock markets.

According to the Ministry of Finance and Economy and the Ministry of Planning and Budget, Prime Minister Han Duck-soo recently instructed the ministries to review listings of major public corporations on the stock market to make 20 to 30 percent of their shares available for transactions. The prime minister said, “I’ll actively push forward with the listing of public corporations under privatization,” in the National Assembly’s audit of state affairs in October 2005 when he was the Deputy Prime Minister of Economy. But his plan has not been realized because of conflicting interests of public corporations in relation to the stock listing.

Most public corporations define their investors as government and state-sponsored institutes by law, which makes it impossible for institutional investors and individuals to buy and sell the shares of public corporations.

Therefore, the listing of public corporations which can be listed on the stock market without changing related laws is being reviewed first. Such corporations include Korea Express Corporation, Incheon International Airport Corporation, Korea District Heating Corporation, Korea House Guarantee Corporation, Korea Appraisal Board and the Korea Airports Corporation.

ddr@donga.com