Daewoo Shipbuilding to Advance Payment of Partner Companies' Delivery Fees Ahead of Lunar New Year

[Asia Economy Reporter Hwang Yoon-joo] Daewoo Shipbuilding & Marine Engineering (DSME) will make early payments of approximately 44 billion KRW in delivery payments and progress payments to small and medium-sized material supply partners to boost morale and stabilize management ahead of the Lunar New Year holiday.

The delivery payments to be made this time were originally scheduled for February 10, but will be paid early on February 5, five days ahead of schedule, before the Lunar New Year. DSME has been making early payments of delivery payments for every holiday since Chuseok in 2018.

Through efforts to normalize management, DSME's financial situation has continuously improved, including reductions in borrowings and improvements in debt ratio. However, profitability has been deteriorating due to a decrease in order backlog caused by failure to meet order targets in recent years and an increase in fixed costs. In particular, this year is expected to be a difficult year due to a shortage of work.

Despite these difficult circumstances, DSME stated that it decided to make early delivery payments this time as well to stabilize management and boost morale of its partners who are suffering double hardships due to COVID-19 and other factors.

A DSME official said, "Although both the parent company and partners are facing difficulties due to COVID-19 and other issues, we will contribute to regional and national economic development through win-win cooperation."

This content was produced with the assistance of AI translation services.