Four South Korean firms including a mid-sized steelmaker have received government approval to carry out voluntary corporate restructuring through fast-track legal and administrative procedures, the trade ministry said Wednesday.

The Ministry of Trade, Industry and Energy said a government panel chose four firms -- Histeel Co., Leejin Co., Bokwang Co. and Shinsung Solar Energy Co. -- to endorse their proposed restructuring efforts to boost competitiveness.


Just a few weeks ago, the Seoul government vowed to encourage local steel and petrochemical manufacturers to reduce the supply glut as part of its efforts to strengthen the competitiveness of local companies.

Histeel, a mid-sized steelmaker which posted 130 billion won (US$146.2 million) in sales last year, is planning to sell its steel-tube manufacturing factory and transform one of its lines into higher value-added steel products, according to the ministry.

Leejin, a shipbuilding equipment and materials firm, will dispose of its facilities to deal with a worldwide slump in the shipbuilding sector, while Bokwang and Shinsung Solar Energy also submitted plans to downsize and reorganize their business portfolios.

The government will give legal and administrative support to help the four firms fulfill the restructuring process in accordance with the Special Act on the Corporate Revitalization, dubbed the "one-shot act."

The act came into effect in August to help businesses conduct intra-corporate mergers and spin-offs through simplified procedures including exemptions from strict antitrust laws and financial market regulations. They will also be given tax benefits and subsidies for research and development on corporate restructuring.

Under the new law, the companies that want to benefit from the fast-track corporate restructuring procedures are required to win government approval.

Last month, the government panel approved voluntary corporate restructuring of three companies including Hanwha Chemical Corp., a leading chemicals manufacturer, as the first "one-shot act" beneficiaries. (Yonhap)