Sunday, May 18, 2008 - 06:00
AFP News Briefs ListSKorea military to supervise Daewoo shipyard sale: report
South Korean military intelligence officials will monitor the sale of Daewoo Shipbuilding and Marine Engineering, the world's third largest shipyard, a report said Sunday.
The move is aimed at curbing leaks of the company's weapons-related technology, Yonhap news agency said. The shipyard produces submarines, destroyers and other military equipment.
Creditors control Daewoo Shipbuilding, which went bankrupt in the aftermath of the 1997-98 Asian financial crisis. They plan to select a preferred bidder as early as August for their combined 50.4 percent stake.
"The government is considering mobilising military intelligence agents for the upcoming due diligence," an unnamed government official was quoted by Yonhap as saying.
The government also plans to prevent foreigners from taking part in the due diligence, he said.
Hyundai Heavy Industries, the world's largest shipyard, and steel giant POSCO have shown interest in bidding for Daewoo Shipbuilding.
The value of the stake held by creditors, currently estimated at some 3.6 billion dollars, has soared due to the company's bright outlook.
Last year it posted a net profit of 321 billion won (307 million dollars), up 4.5 times from the previous year. Sales climbed 32 percent to 7.1 trillion won.
South Korean shipyards have secured record orders last year and this year because of strong demand for crude carriers and offshore exploration equipment amid rising oil prices.
Images
File photo shows a pedestrian passing by a cluster of Daewoo Group name plates plastered on the wall of the group's sprawling Seoul headquarters. South Korean military intelligence officials will monitor the sale of Daewoo Shipbuilding and Marine Engineering, the world's third largest shipyard, a report said Sunday.
© 2007 AFP Kim Jae-Hwan
