UPDATE 1-KDB sees Daewoo Ship sale by end-2008, eyes M&A

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SEOUL, July 24 (Reuters) - The head of state-run Korea Development Bank (KDB) said on Thursday it would resume the delayed sale of Daewoo Shipbuilding (042660.KS: Quote, Profile, Research, Stock Buzz) in August, possibly wrapping up the $4 billion deal by end-2008.

Despite recent weakness in the stock markets, bidders for Daewoo Shipbuilding and Marine Engineering Co Ltd, the world's No. 3 shipbuilder, are expected to pay hefty premiums amid upbeat prospects for the industry.

KDB Governor Min Euoo-sung also said the bank was considering buyout deals in overseas markets in the area of investment banking or asset management.

"The next one or two years present a very good opportunity (for M&A)," Min told a news conference.

In the domestic market, KDB would be interested in retail banking if a buyout deal presented itself, Min added.

"I think an opportunity might emerge sooner in foreign markets," he said.

Daewoo Shipbuilding shares rose 5.04 percent to 42,700 won by 0547 GMT, leading the wider market's 2.11 percent gain.

State institutions including KDB have put up 50.4 percent of Daewoo for grabs but the sale has been stalled due to union protests and delays in selecting a lead manager.