Cloud hangs over Kia's future

SEOUL: Rumors about Kia being taken over by Samsung are resurfacing, particularly given the company's cash crisis.

Kia has suffered in its domestic market with sales in the first six months of this year down 11 per cent from last year.

To bolster sales, it has slashed prices of its cars in South Korea by 30 per cent until the end of the month in an effort to stimulate sales.

The Kia Group is reeling under US$10 billion of debt. The group, South Korea's eighth-largest conglomerate, has been placed under bankruptcy protection by its creditors.

It has initiated a massive $2 billion real estate sell-off to aid the stricken giant.