The South Korean paper manufacturer is expected to complete the agreement on October 20 with three organisations -- two from the United States and one from the Netherlands -- for the deal.

The IFC, an affiliate of the World Bank, will provide $50 million to the South Korean firm with a loan and purchase of equity and convertible bonds. The IFC would acquire about a 20 per cent stake in the company.

The remaining $40 million will be supplied by the Emerging Market Partnership, a US-based investment fund, and FMO, an investment body controlled by the Dutch government.

Part of the funds will be used to invest in plant facilities, but most of the amount will be used as restructuring funds, a Shinmoorim official said. Shinmoorim posted sales of about 220 billion won in its 1997 fiscal yearending March 1998.