KG Chemical Corporation (KOSE:A001390) is close to purchasing Dongbu Steel Co., Ltd. (KOSE:A016380), according to its major creditor. The Korea Development Bank Dongbu Steel's largest shareholder said it had selected a consortium comprised of KG Chemical and Cactus Private Equity Co., Ltd. as the preferred bidder for the steelmaker. The deal is valued at around KRW 500 billion ($440.84 million).