[2021 National Assembly Audit] Chairman Lee Dong-geol: "Considering Alternatives During Daewoo Shipbuilding Sale Is Inappropriate"

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] Lee Dong-geol, Chairman of KDB Industrial Bank, stated that it is inappropriate to consider other alternatives during the sale process of Daewoo Shipbuilding & Marine Engineering (DSME).

On the 15th, during the National Assembly's Political Affairs Committee audit, Park Yong-jin, a member of the Democratic Party of Korea, asked Chairman Lee not to insist that selling DSME is the only way to survive, but to consider various options.

In response, Chairman Lee apologized for the delay in the corporate merger review between DSME and Hyundai Heavy Industries, saying, "I am sorry," and added, "While I agree that various alternatives should be considered, it is not desirable to publicly and officially review other alternatives during the ongoing sale process."

Chairman Lee also expressed his intention to focus solely on the merger with Hyundai Heavy Industries under the current circumstances of the DSME sale, stating, "Considering alternatives requires assessing DSME's potential for independent survival, but DSME still faces large-scale deficits and has fundamental weaknesses in competitiveness."

As the largest shareholder of DSME, Industrial Bank announced in January 2019 that it would transfer DSME to Hyundai Heavy Industries Group through a capital contribution in kind. Although the final contract was signed in March 2019, progress has been slow due to delays in the corporate merger review. Meanwhile, the DSME labor union began a tent protest in front of the Industrial Bank's Seoul headquarters from the previous night, demanding the withdrawal of the sale.

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