Workers express concern over job security on sale of Hanjin Heavy

Hanjin Heavy Industries & Construction Co. workers insist that their jobs should be retained even after the company is sold off and that plans to revive the company should be proposed.

The Korea Development Bank (KDB), Hanjin Heavy's main creditor, finalized the preliminary bid to sell a controlling stake in the shipbuilder on Oct. 26.

Civic groups in Busan, where the Hanjin Heavy shipyard is located, are worried that the shipyard would be converted into an apartment complex if sold to a private equity fund.

There are seven bidders, including private equity funds and Korea Real Estate Investment & Trust Co, to all or part of the 83.45 percent stake in Hanjin Heavy Industries. The books of Hanjin Heavy would be available to them this month.

Creditors will choose the preferred bidder in December.

The stake involved belongs to seven local financial institutions, including KDB, and three Filipino financial institutions that include Rizal Commercial Banking Corporation.

It would take two to three months for the conclusion of the sale, which should be approved by authorities, including South Korea's arms procurement agency, the Defense Acquisition Program Administration.