Still Hungry for M&As

Kumho-Asiana Chairman Park hints at expanding shipping and financial sectors

Chairman Park Sam-koo of Kumho-Asiana Group said the group has been seriously considering expanding into the shipping and financial industries to find future growth engines for the group.
In a media conference held at Lotte Hotel in downtown Seoul on the occasion of the group's 72nd anniversary on April 7, he said its affiliate Korea Express has four coastal vessels leading the group to consider expanding the number of ships for greater synergy with other affiliates. He said he hasn't looked into the real situation at Korea Express, which the group acquired early in the year, but he is always open to letting the group conduct a study and consider expanding into the maritime shipping industry.
What the chairman meant was that the group will become an integrated logistics group now that it already has an airline and a land transport company by entering the shipping industry.
As to the advancement into the financial industry, the group will speed up the listing of shares of Kumho Life Insurance on the stock exchange, probably in the first half of the year, now that preparation is complete. The time for the initial public offering will depend on the situation in the stock market.
The group also plans to take back Kumho Integrated Finance, now managed in trust by Woori Financial Group, three years from now and launch an asset management firm.
Park, however, ruled out taking on a securities firm, unsure whether he will be able to run a stock brokerage business. But, he added, the asset management business is always on his mind because he has to manage the assets of Kumho Life. Sources said that what Park meant was he would not enter the stock brokerage business because an asset management company can handle all financial businesses under the new Capital Markets Consolidation Law to come into force in February 2009.
Park said the group has strong logistics, chemical manufacturing and construction sectors and it is weak in the financial sector.
He said the group has as its affiliates Kumho Integrated Finance and Kumho Life, but it is not much compared to other business groups. Kumho Life can play the role of a supporter to the group, but it can never be considered as a main affiliate of the group.nw