South Korea's Hyosung to Be Biggest Provider in North Power Scheme

December 19, 2000 - Asia Pulse Private Limited

Seoul, December 19, 2000 (Asia Pulse via COMTEX) -- If South Korea provides electricity to North Korea, as requested by Pyongyang, Hyosung Corp. will likely be the biggest beneficiary of the deal, Good Morning Securities Co. said Tuesday.

If Hyosung receives 50 percent of the orders for the project to set up facilities to supply electricity to North such as power lines and transformers, it will provide Hyosung with sales of 120 billion won (US$100 million) and operating profits of over 20 billion won, Kim Mee-young, an analyst at Good Morning, forecast.

It will cost 300 billion won over one or two years to install the power lines needed to provide the 500,000 kilowatts being requested by Pyongyang during inetr-Korean minister-level talks held last week, she noted.

Hyosung's sales in transformers and breakers account for 13 percent of its total product.

(Yonhap)