Kang Seok-hoon "Daewoo Shipbuilding Needs a Capable Owner... Hanwha Expresses Acquisition Intent"

KDB Bank President: "Under the Principle of Swift Sale, Considering Sale to Large Conglomerate Affiliates"

Chairman Kang Seok-hoon is speaking at an emergency press conference on Daewoo Shipbuilding issues held on the 26th at the Korea Development Bank headquarters in Yeouido, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporters Yu Je-hoon and Bu Ae-ri] Kang Seok-hoon, Chairman of KDB Industrial Bank, stated on the 26th regarding the sale of Daewoo Shipbuilding & Marine Engineering (DSME), "Finding a capable private owner is the fundamental solution for DSME to improve its structure and strengthen its mid- to long-term competitiveness." He added, "We have approached domestic large conglomerates with verified management and financial capabilities for investment intentions, and as a result, Hanwha Group has expressed its intention to acquire."

Chairman Kang held a press conference at the headquarters in Yeongdeungpo-gu, Seoul, in the afternoon and said, "While improving the conditions for sale through management efficiency of Daewoo Shipbuilding, we have kept all possibilities open, including a full sale or a split sale, and have been searching for buyers with a high understanding of the business and financial backing," he explained.

He first stated, "Previously, I announced the three major principles of restructuring: responsible roles of major shareholders, sharing the pain among stakeholders, and sustainable normalization plans, along with a fourth principle of prompt sale promotion." He continued, "In the case of Daewoo Shipbuilding, under the system where KDB is the major shareholder, there are limits to fundamental competitiveness improvements including expanding research and development (R&D) investment. To avoid repeating past mistakes of missing the sale timing and incurring greater losses, we have been pushing for a swift sale since my appointment."

Chairman Kang also mentioned that Hanwha Group has expressed its intention to acquire, saying, "First, DSME will sign a conditional investment contract, and then proceed with this case through a 'stalking horse' method where the final investor is decided through a competitive bidding process." He added, "If Hanwha Group is selected as the final acquirer, Hanwha Group will secure management rights through a 2 trillion KRW paid-in capital increase for DSME."

Furthermore, Chairman Kang said, "(Once the acquisition is completed) DSME, which has been under KDB’s wing for about 21 years since graduating from workout in 2001, will welcome a private major shareholder." He stated, "Through this investment attraction, DSME will be able to respond to future funding shortages with a capital increase of about 2 trillion KRW, secure investment resources for future growth engines, and (from the creditors' perspective) increase the possibility of debt recovery, minimizing losses for the creditors."

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