Mayors of Geoje, Tongyeong, and Changwon Urge Withdrawal of Daewoo Shipbuilding Sale

The mayors of Changwon, Tongyeong, and Geoje in Gyeongnam held a joint press conference in front of the west gate of Okpo Daewoo Shipbuilding & Marine Engineering, calling for the withdrawal of the sale of Daewoo Shipbuilding.
[Image source=Geoje City]

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Sang-hyun] On the 24th, Byeon Gwang-yong, Mayor of Geoje, Kang Seok-ju, Mayor of Tongyeong, and Heo Seong-mu, Mayor of Changwon, held a joint press conference in front of the west gate of Okpo Daewoo Shipbuilding & Marine Engineering (DSME) to urge the "withdrawal of the Daewoo Shipbuilding sale and a reexamination from the starting point."

The mayors appealed, "Geoje, Tongyeong, and Changwon, which have been designated as employment crisis areas and special zones for industrial crisis response for several years, are all putting their full effort into reviving the shipbuilding industry and local economy with strong will and win-win policies from the entire local community."

They continued, "Daewoo Shipbuilding & Marine Engineering has achieved profits for four consecutive years and recently secured marine plant orders exceeding 1 trillion won and six LNG container ships," adding, "The situation has changed since the announcement of the sale, and now is the time to properly evaluate Daewoo Shipbuilding."

They pointed out, "If Daewoo Shipbuilding is sold as it is, work orders will be concentrated on Hyundai Heavy Industries, and side effects such as workforce reduction will occur," and "Moreover, the conditional approval through LNG ship market share restrictions raised during the EU merger review process directly contradicts the government's intention to strengthen external competitiveness through restructuring the shipbuilding industry."

They also criticized, "The ongoing sale does not comply with the purpose of the Fair Trade Act, and extending the deadline for the in-kind investment contract, which has already been extended once, again is merely an excuse to forcibly complete the sale," adding, "This will only prolong the pain of the region."

They urged, "Now is the time for the Fair Trade Commission to shed the stigma of bowing to the EU and take the lead in making a disapproval decision for the continuous development of the shipbuilding industry and the stability of the local economy."

Finally, they said, "We strongly demand the withdrawal of the sale of Daewoo Shipbuilding by reexamining Daewoo Shipbuilding's efforts to normalize management and the current status and prospects of the global ship market, and that it must be reconsidered from the starting point."

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