SEOUL (Bloomberg) — South Korea said it is looking at selling state-controlled assets to overseas investors and has yet to make a decision on stakes in Daewoo Shipbuilding & Marine Engineering Co. and Korea Aerospace Industries Ltd.

No conclusion has been reached on seeking foreign buyers of companies including Daewoo Shipbuilding, Korea Aerospace and Hynix Semiconductor Inc., the Ministry of Knowledge Economy said in an e-mailed statement in a response to media reports.

South Korea plans to sell stakes in companies that the government rescued after the 1997-98 Asian financial crisis as part of a drive for more efficient industries and growth in Asia's fourth-largest economy. The nation is headed into its first recession since 1998.

The government may sell about 20 percent of Daewoo Shipbuilding to sovereign funds in the Middle East, the Edaily said, citing a Knowledge Economy ministry official it didn't identify. Stake sales in Korea Aerospace and other companies are also being considered, the report said.

State-owned Korea Development Bank last month ended talks to sell a 50.4 percent stake in Daewoo Shipbuilding, the world's third-largest shipbuilder, after buyer Hanwha Group had difficulties raising funds amid the global credit crunch.