South Korean church to end car venture with North: Source
Published on Nov 27, 2012 5:21 PM
SEOUL (REUTERS) - One of the more bizarre joint ventures in car-making is set to come to an end following the death of the head of South Korea's Unification Church which is to give its stake in the Pyeonghwa Motors operation to North Korea.
Pyeonghwa, which produces models based on ageing Fiat SpA designs as well as those of Brilliance China Automotive Holdings, is the sole carmaker in isolated North Korea, although few of its impoverished citizens are able to afford its products.
"Pyeonghwa Motors' South Korean side is planning to pull out from the joint automaker and donate its 70-per-cent stake to the North," said a source familiar with the transaction, who declined to be identified due to the sensitivity of the issue.
Spokesmen for the church were not immediately available for comment.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!