Presidential Shipbuilding Enters Workout ... Full-Scale Management Normalization Begins

Daesun Shipbuilding, a local company in Busan facing a crisis, will begin full-scale management normalization efforts, including the commencement of a workout and the dispatch of a management control team, together with its creditors.

For mid-sized shipbuilders experiencing difficulties due to rising labor costs, a shortage of skilled workers, and the consolidation of the Japanese shipbuilding industry, the shipbuilding boom has become a poison amid worsening domestic and international conditions.

Accordingly, the creditor group led by the Korea Development Bank has ordered Daesun Shipbuilding to undertake proactive restructuring and is calmly preparing for full-scale normalization following the workout application.

Daesun Shipbuilding announced on the 22nd that starting from the 23rd, it will begin full-scale activities with the dispatch of a jointly formed management control team in agreement with the creditor group.

Having suffered a comprehensive crisis including manpower shortages and rising raw material costs, which deteriorated profitability, Daesun Shipbuilding plans to carry out restructuring work after signing a financial structure improvement agreement with its main creditor bank, the Export-Import Bank of Korea, and will sequentially raise a total of 170 billion KRW in new loans.

Presidential Chosun.

Daesun Shipbuilding will proceed with business normalization through the completion and delivery of 18 ordered vessels and plans to prepare and implement its own financial structure improvement measures such as deferring repayment of existing debts through the workout, cost reduction, and the sale of the Yeongdo site.

To this end, it is preparing to strengthen production capabilities through executive replacement, reorganize its business portfolio focusing on profitability, and slim down the organization to improve its overall structure.

In the future, it also plans to implement multifaceted business innovation measures, including selling the Yeongdo site to repay borrowings, relocating to the Dadae site, adopting a new approach to the new shipbuilding business, and strengthening cooperation with other mid-sized shipbuilders.

A Daesun Shipbuilding official stated, “Through close consultation and cooperation with the creditor group, we will develop a new future for Daesun Shipbuilding, one of the representative shipbuilding companies in the Busan region.”

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