South Korea ordered the takeover of six financially troubled overseas construction firms and two shipping companies under the governments industrial realignment programme Finance Ministry officials said. They said the Industrial Policy Deliberation Committee decided to allow concessionary loans to three firms taking over the eight. The companies involved would be exempted from corporate tax and property transfer and registration taxes. Under the programme five subsidaries of &lt;Chung Woo Development Co Ltd> will be taken over by &lt;Byuck San Corp> &lt;Korea Develpoment Corp> by &lt;Daelim Industrial Co Ltd> and two subsidaries of &lt;Korea Shipping Corp> by the &lt;Hanjin Group>. Another five construction companies were ordered to improve their financial status by reorganising their subsidiaries or selling off unproductive real estate holdings to help repay bank loans the officials said. These are &lt;Pacific Construction Co Ltd> &lt;Life Construction Co Ltd> &lt;Chin Heung International Co Ltd> &lt;Samick Co Ltd> and &lt;Hanshin Construction Co Ltd>. A further five shipping companies -- &lt;Hanjin Container Line Ltd> &lt;Choyang Shipping Co Ltd> &lt;Hyundai Merchant Marine Co Ltd> &lt;Pan Ocean Shipping Co> and &lt;Dooyang Line Co Ltd> -- will be allowed to defer the repayment of bank loans and interest but details have yet to be finalised the officials said. They said the government would take similar measures for more companies in August in line with the continuing realignment policy which had already affected 56 firms last year.
S. KOREA ORDERS MERGERS OF TROUBLED COMPANIES