Kumho Asiana Group Chairman Park Chan Bup Will Resign for Health Reasons

Kumho Asiana Group, the South Korean group that lost control of units to creditors, said Chairman Park Chan Bup was stepping down on health grounds after a year in the job.

Park, 65, will become an adviser to unit Asiana Airlines Inc. after leaving his post tomorrow, Kumho Asiana said in an e-mailed statement. No replacement has been selected yet, it said.

Park in December agreed to sell control of Daewoo Engineering & Construction Co. to Korea Development Bank as Kumho Asiana sought funds to pay debts stemming from the unprofitable purchase of the construction company in 2006. KDB and other creditors also took control of Kumho Industrial Co. and Kumho Tire Co. earlier this year as Kumho Asiana struggled for funds.

The group said on Jan. 5 that it plans to raise 1.3 trillion won ($1.1 billion) from asset sales to repay debts. Korea Development Bank agreed to acquire 50 percent plus one share in Daewoo Engineering for 2.9 trillion won.

Kumho Industrial, a builder, gained as much as 5.4 percent in Seoul trading to 3,495 won and stood at 3,330 won as of 11:47 a.m. Kumho Tire advanced as much as 5.4 percent to 4,850 won. Asiana Airlines, the nation’s second-biggest carrier, dropped as much as 2.4 percent to 8,710 won.

To contact the reporter on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net

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