Proceeds from sale of KT stake to reach 4 trillion won

Dongwon Securities Co. predicted that the government would earn about 4 trillion won from the sale of its 14.7-percent stake in Korea Telecom (KT) to domestic investors.

However, in a report unveiled Wednesday, the securities firm said that considering the current stock market slump both here and abroad, it would be difficult for the government to dispose of the stake in line with its schedule for privatizing the firm.

Dongwon analysts forecast that chances are good that the stake would be sold to an overseas strategic investor and that this would serve to boost the value of KT shares. They added that selling the stake through a domestic auction would be difficult owing to its size.

The analysts said that companies such as Samsung, LG, SK and Pohang Iron & Steel (POSCO) are interested in obtaining KT managerial rights, but they noted that because a 33.4 percent stake would still have to be sold off, they were not optimistic about a purchase-taking place amid the current financial crunch.