Korea's state organizations to shed assets worth $15 bn over next 5 years

South Korea’s public organizations will shed non-core assets worth 22.6 trillion won ($15.72 billion) until 2027 to improve financial status under streamlining order from the Ministry of Economy and Finance (MOEF).

According to restructuring outline by 350 state-owned institutions, they aim to divest 22.6 trillion won worth assets – 13.9 trillion won in real estate properties and the remainder in stakes.

Korea Racing Authority plans to dispose of its building in Seocho, southern Seoul, worth 138.5 billion won in 2024, and a building in Yongsan at 98 billion won in 2025. The Korea District Heating Corporation hopes to sell its building in Gangnam at 50 billion won.

Assets under umbrella organizations of the Ministry of Land, Infrastructure, and Transport make the bulk of property divesture plan at 8.93 trillion won, followed by affiliates of the Ministry of Oceans and Fisheries (1.55 trillion won) and the Ministry of Trade, Industry, and Energy (1.04 trillion won).

The Financial Services Commission will dispose of the largest 6.87 trillion won worth stakes in umbrella enterprises.

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