SKorea's Kumho group unveils plans to secure more liquidity

0 Comments | AFP, July, 2008

SEOUL (AFP) — South Korea's seventh-largest conglomerate Kumho Asiana said Thursday it would secure more liquidity amid market jitters about a possible cash shortage.

The group said its units, including the airline Asiana, would raise a total of 4.57 trillion won (4.52 billion dollars) by selling non-core assets to improve liquidity.

There have been concerns among investors about the group's financial health after it bought Daewoo Engineering and Construction for 6.43 trillion won in 2006 and top logistics company Korea Express for 4.1 trillion won this year.

The group dismissed concerns about a possible credit crunch saying it holds 4.4 trillion won in cash while its debt stands at 13.5 trillion won compared with assets worth 36.7 trillion won.

It...