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KDB Head Slams Daewoo Motor Sale Talks

President Jung Keun-young of the state-run Korea Development Bank said Wednesday that the ongoing negotiations to sell off Daewoo Motor have not been based on business ideals but politics.,

Jung told reporters that a "business-minded" handling of the sales would solve every concerned issue,, adding that under an economic approach creditors would sell the marketable assets to General Motors at reasonable prices,, while excluding those assets that which would not receive a reasonable prices.

Jung explained that the real estate value of Daewoo Motor's Pupyeong plant is estimated at W2 trillion,, which could easily balloon when if use of the land was changed.

Jung,, however,, said that the problem of the Pupyeong plant is that it contains production facilities that do not generate any profits as well as militant workers who have been voicing their opposition to the sale.

Jung also remarked that Daewoo's component suppliers and workers have been suggesting that Daewoo Motor had better be handed over to GM for free. Jung countered the claim by asking that if it was okay to simply write off the massive losses at creditor banks which are supported by taxpayers.

Jung said that there was no set schedule to complete the negotiations and added that his bank has counter-measures ready in case the negotiations break down.

(Sunwoo Jung,, jsunwoo@chosun)

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In 1947, a 17-year-old Parisian, Claude Calmettes visited his great aunt and found by chance a photo album wrapped in silk. The album contained pictures of exotic places he had never seen before.