The Role of Foreign Investment in Korean Privatization

Mikyung Yun and Young-Ho Park
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Mikyung Yun: Korea Institute for International Economic Policy
Young-Ho Park: Korea Institute for International Economic Policy

East Asian Economic Review, 1999, vol. 3, issue 2, 29-70

Abstract: This thesis is aiming at observing the privatization trend of the state-owned enterprises after the declaration of the privatization of a great number of the state-owned enterprises in 1998. This thesis analyzed and made comments on this issue, and got an enlightenment on the overseas sale of the state-owned enterprises, according to a deep analysis of POSCO's and KEPCO's achievement on privatization by issuing Depositary Receipts. To issue DR (deposit receipt of stock) in overseas did not restrict the holding limitation of foreigners; it also has the advantage of getting the domestic premium in Korea. So it is considered to be the principal method of the overseas sale of the state-owned enterprises. The result of this thesis shows that, generally speaking, the recent issue of the DR of state-owned enterprises is successful as a blueprint of privatization. But in order to maximize the scale of sales financing, it is necessary to implement sale strategies by way of taking the pre-market stabilization, using financial experts, accepting various skills of selling.

Keywords: Privatization; Foreign Investment; Korea (search for similar items in EconPapers)
JEL-codes: H83 L32 L33 (search for similar items in EconPapers)
Date: 1999
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