S. Korea to privatize, restructure firms

SEOUL, Oct. 11 (UPI) -- South Korea says it will privatize and restructure 30 government-owned companies in a bid to increase their productivity.

Included on the list are the Korea District Heating Corp., Korea Power Engineering Co. and Korea Plant Service and Engineering Co., of which Seoul will sell between 40 percent and 49 percent of the government's stake, the South Korean Yonhap News Agency reported Saturday.

The moves are the third and final phase of President Lee Myung-bak's program to improve the nation's competitiveness, the news agency said, adding that public-run companies receive $18.5 billion in taxpayer subsidies each year.

Vice Finance Minister Bae Kook-hwan told reporters that the new phase calls for the privatization of 10 companies, the merging of seven other firms into three, the shuttering of two and reorganization of one.

Bae said the government will retain at least 51 percent stakes in the district heating corporation to prevent price hikes, while two of its subsidiaries providing services to Ansan and Inchon are to be sold off to the private sector, Yonhap reported.