[THE INVESTOR] The South Korean government approved four companies to carry out voluntary corporate restructuring under “one-shot act”, the Trade Ministry said on Oct. 19.

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

The announcement came a few weeks later when the Seoul government vowed to encourage local steel and petrochemical manufacturers.

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.

Histeel, a midsized steelmaker which posted 130 billion won (US$146.20 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.

(theinvestor@heraldcorp.com)