South Korean has $7.5bn in outstanding payments in Libya.


Korean companies shares rise after Gaddafi death

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The share prices of South Korea's legion of construction companies ended on a high last week with the industry expected to benefit from a raft of restarting and rebuilding projects in Libya following the death of former leader Moammar Gadhafi.

Shares in Daewoo Engineering & Construction jumped 8.0%, Hyundai Engineering & Construction Co by 7.5% and GS Engineering & Construction Co by 4.4% as hope of stability returning to Libya was met with relief by investors.

The North Africa and Middle East market accounts for 65% of the South Korean industry’s overseas sales. Understandably unrest in the region has impacted the performance of companies and sliced value from their share prices.
 

Prior to the outbreak of civil war in the country, South Korean construction companies were estimated to have $10 billion of contracts underway in Libya alone. Analysts calculate that companies still have $7.5 billion in payments still outstanding from the work.

Rhoo Yong-seok at Hyundai Securities told local media that Hyundai and Daewoo have the greatest exposure in Libya of South Korean companies and consequently have the most to gain from stability returning to the country. Hyundai Engineering revealed it is preparing to send back workers and equipment to restart stalled projects in December.

"The two firms will be able to clinch some infrastructure projects though major ones are likely to go to the US and Europe," said Yong-seok.