SKOREA’S TONGYANG GROUP SEEKS SALE OF STAKES IN LIFE INS. UNIT

Tongyang Group, a mid-sized South Korean conglomerate, said Friday that it is pushing to sell part of its stakes in Tongyang life insurance Co. (KSE:082640) to improve its cement unit’s financial health.

The group, which has been put under a creditor-led restructuring program since April in 2009, said the planned stake sale aims to reduce debts and normalize Tongyang Major Corp., which has negative net worth.

“The group is considering ways to cut debts of Tongyang Major by selling part of a 50 per cent stake in Tongyang life insurance owned by the group’s other affiliates,” a high-level group official said, adding details have yet to be determined.

Tongyang financial Service Corp. holds a 28.7 per cent stake in the life insurance company, with Tongyang Securities Co. and Tongyang Capital owning 13.3 per cent and 7.5 per cent each.

Tongyang Life Insurance listed its shares on the main bourse in October last year.