Hyundai Group to sell assets

[SEOUL] Hyundai Group, owner of South Korea's second biggest shipping company, plans to raise at least 3.3 trillion won (S$3.9 billion) by selling assets to boost cash.

Hyundai Group will sell Hyundai Securities Co and two other financial units to raise as much as one trillion won, it said in a statement yesterday. Hyundai Merchant Marine Co, the biggest shareholder of Hyundai Securities, plans to sell stakes in its terminal business and restructure bulk carrier operations for about 1.5 trillion won. The group also expects to reap 340 billion won by selling the Banyan Tree Hotel in Seoul, it said in the statement.

Hyundai Group's plan comes three days after Korean Air Lines Co said that it plans to raise 3.5 trillion won by selling assets, including refiner S-Oil Corp shares and airplanes. Some South Korean freight companies are running low on cash as weak demand and excessive capacity have caused rates to slump.