Doosan Moves to Revitalize Atmosphere... Attention Also on Whether Kamco Will Purchase Corporate Assets

Slow Progress in Affiliate and Asset Sales Beyond Workforce Restructuring
Chairman Park Jung-won Sends Message to All Employees: "1 Trillion Won Capital Increase and Asset Expansion Within the Year"
On the Same Day, Financial Services Commission Announces "Corporate Asset Purchase Program Led by KAMCO to Launch Next Month"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Doosan Group, which received a capital injection of about 3.6 trillion won from creditors, is delaying the sale of affiliates and assets to implement a business normalization plan (self-rescue plan) focused on securing liquidity worth 3 trillion won.

In response, Doosan Group Chairman Park Jung-won has personally stepped up efforts to change the atmosphere, and attention is focused on whether the group can receive a helping hand such as the corporate asset purchase program prepared by the government.

According to industry sources on the 14th, since announcing the business normalization plan (self-rescue plan) to secure liquidity worth 3 trillion won, Doosan Group has been making every effort to secure liquidity by implementing measures such as voluntary retirement and temporary shutdowns.

However, Doosan Group has yet to achieve visible results in the sale procedures of affiliates and assets such as Doosan Solus, Club Mow CC, and Doosan Tower. Doosan Group expects to receive more than 1 trillion won from the sale of 61% of shares and management rights transfer of Doosan Corporation, considering the future value of the business. However, due to the value of Doosan Solus and adverse conditions such as market liquidity tightening caused by the prolonged COVID-19 pandemic, it is known that there are differences in perspectives with potential buyers.

Additionally, the sale of Doosan Tower is reportedly in the final stages. The price is up to 800 billion won, but after taxes and debts, the amount Doosan can secure is about 200 billion won. The market estimates the sale price of the golf course Club Mow to be around 160 billion won. Doosan Corporation's Motrol BG (business division) is also up for sale, with an estimated price range of 400 to 500 billion won. The preliminary bidding for Doosan Motrol BG reportedly saw lower participation than expected.

Chairman Park is strengthening internal unity by sending messages expressing the will for self-rescue directly to all employees. It is known that Doosan Group employees have been unsettled as the recent sale situation has not been favorable to Doosan. Earlier, on the 11th, Chairman Park sent a message to all Doosan Group employees, stating, “As I see you worrying about the company due to the overall poor management, including liquidity problems in heavy industries, I feel a heavy responsibility as chairman,” and announced plans to expand capital, including a paid-in capital increase worth 1 trillion won within this year.

Attention is also focused on whether the government can once again play the role of a savior to prevent Doosan from selling assets and affiliates at bargain prices due to a flood of sales or time pressure. On the 11th, the Financial Services Commission announced that the Korea Asset Management Corporation (KAMCO) will officially launch a corporate asset purchase program worth 2 trillion won plus alpha starting next month.

If timely asset sales are difficult, KAMCO and private joint investments will be prioritized to directly purchase and hold assets first, then sell them to third parties. In addition, business operating assets such as factories and office buildings will be purchased by KAMCO and then re-leased, or assets with corporate repurchase demand will be purchased and transfer rights granted, among various operational methods.

The support targets prioritize large corporations with financial structure improvement needs, companies requesting creditor support, and those with significant self-rescue efforts and proactive funding demands.

This content was produced with the assistance of AI translation services.