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KDB to Establish Subsidiary Responsible for Corporate Restructuring
For Swift Restructuring of Troubled Companies
KDB to Establish Subsidiary Responsible for Corporate Restructuring
  • By Yoon Young-sil
  • April 26, 2019, 09:30
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Korea Development Bank (KDB) will set up KDB Investment as its subsidiary for swift restructuring of distressed companies.

Korea Development Bank (KDB) announced on April 25 that it would set up KDB Investment as its subsidiary to be in charge of investee management and industrial restructuring. The initial capital of the subsidiary is 70 billion won and its first CEO is Lee Dae-hyun, KDB’s former senior vice president.

The purpose of KDB Investment is to acquire investee shares from KDB, carry out restructuring, and sell the restructured companies without delay so that those invested by KDB can be efficiently managed and restructuring led by creditor financial institutions can be complemented.

The former senior vice president has supervised the establishment of the subsidiary since the start of the process and KDB appointed him as the first CEO so that the subsidiary can be stabilized early and assets can be transferred promptly. The number of its employees is scheduled to be increased from 12 to 25 or so.

The subsidiary is going to recruit experts specializing in private equity management, financial consulting, restructuring and M&A. A couple of companies are likely to be managed by the subsidiary in place of KDB this year. KDB explained that the subsidiary can make independent decisions as KDB cannot intervene in its investment activities according to the Financial Investment Services and Capital Markets Act.