Korean builders streamline their business operations

SEOUL, Nov. 13 (Yonhap) -- South Korea's small and mid-size builders are
downsizing and restructuring their operations to combat a financial crisis caused
mainly by a rising inventory of unsold homes, industry sources said Thursday.

Troubled builders are trying to secure liquidity by selling non-core assets and
affiliates and reducing the price of new homes, the sources said.
On Wednesday, Shinsung Engineering & Construction Co., a mid-sized local builder,
asked a Seoul court to reschedule its debts with creditors amid growing concerns
over the financial health of domestic construction firms.
Woolim Co. downsized its operations and workforce on Wednesday to cut costs and
leased its office building in downtown Seoul to another company to increase its
cash holdings.
Another mid-sized construction company, Hyunjin Co., plans to sell its land
assets to other builders in South Korea or China, the sources said.
Keangnam Enterprises Ltd. on Monday sold Joongang Agricyl Co., an affiliate food
and beverage broker, to Pacific Engineering & Construction Co. for 25 billion won
(US$17.9 million).
Dongmoon Construction Co. also made a large sale in an attempt to weather the
crisis, letting go of its 30.56 percent stake in Leneco Co., a home-network
system provider, for 20.2 billion.
Halla Engineering & Construction Co. on Nov. 4 secured 18.2 billion won in cash
by selling its stake in Saeronautomotive Corp., a South Korean auto parts maker.
On top of such moves, some builders -- including Dongil Construction Co. and
Poonglim Industrial Co. -- are rushing to cut prices for their unsold homes by as
much as 10 percent to boost their cash holdings, according to the sources.
ksnam@yna.co.kr
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