Korea Development Bank plans to open binding bids for the sale of 99.9 percent of KDB Capital, an equipment leasing and venture capital firm, around the end of this month, the state-run lender said Wednesday.

“We have sent out a tender invitation to three qualified bidders,” the bank said in a statement. 


In the running are U.S. private-equity giant Carlyle, a private equity fund set up by Seoul-based SK Securities and a local lodging company.

The stake sale comes as Korea’s policymakers and politicians debate how to recapitalize policy banks, including KDB, to help support restructuring of debt-ridden companies. 

KDB is the main creditor of Hanjin Shipping, Hyundai Merchant Marine and scores of other companies seeking a debt relief deal with creditors. 

The shares’ book value is around 600 billion won ($522.2 million).

Credit Suisse and Samil PwC are managing the sale.

By Lee Sun-young (milaya@heraldcorp.com)