S. Korean Government to Take Over Kia

The South Korean government said it will take over Kia Motors Corp., aiming to stem a financial crisis that crippled stocks and forced even profitable companies into receivership. The Finance and Economy Ministry said state-owned Korea Development Bank will take a stake in Korea’s third-largest auto manufacturer by converting loans it extended to Kia into equity. KDB will then apply for court receivership for Kia on behalf of its creditors. A spokesman for Irvine-based Kia Motors America Inc., the company’s U.S. import and distribution arm, said it was too soon to know how the move would affect U.S. operations. Kia Group, the auto manufacturer’s parent company, owes banks and finance companies $10 billion.