SEOUL, KOREA - The share price of S-Oil Corp. is showing strength on the news of investment by Saudi Arabia's Aramco. Already a 35-percent holder of the oil company, Aramco will try to become the 100-percent owner of the company by taking over shares hitherto held by second-largest shareholder Hanjin Shipping.

 

At 10:00 am on January 10, the shares of S-Oil were traded at 70,900 won, up 4.73 percent from 67,700 won.

 

S-Oil president Nasser al-Mahasher said in a luncheon meeting held for foreign company executives on the 9th at the Presidential Palace, "Aramco ended up buying the shares worth US$2 billion held by Hanjin Shipping that was under restructuring. The investment was based on our firm confidence with the Korean economy."

 

He also said, "We are currently looking for a site in Ulsan for a 5-trillion-won investment project. In addition, our company is reviewing a plan to establish an R&D center in Magok, Seoul." In order to overcome the liquidity crisis it has been under since late last year, Hanjin Shipping announced plans to sell off several properties in Korea and overseas. The company said earlier that it would sell off all its holdings of 28.4 percent in S-Oil.