South Korean steelmaker Dongkuk Steel Mill said that it would ask Korea Asset Management Corporation to delay sealing its USD 321 million offer for a small domestic builder for at least 1 year.

A Dongkuk official said that "We have decided to give up buying Ssangyong Engineering. We will notify KAMCO of the decision on December 2nd 2008."

The disclosure came after the Maeil Business Newspaper reported that Dongkuk had decided to give up the purchase Ssangyong Engineering due to price differences.

A KAMCO spokesman said that the agency would respond as soon as it obtained Dongkuk's notice.

It may be noted that a consortium led by Dongkuk was picked as the preferred buyer of a 50.1% stake in Ssangyong Engineering & Construction in July 2008.


The proposed delay comes after global acquisition markets have been hammered by tight funding conditions and recessions in major economies, while debt laden conglomerates are seeking to sell assets for cash.