Debts at South Korea’s troubled big three yards doubled in five years

Debts at South Korea’s troubled big three yards doubled in five years

With South Korea’s big three shipbuilders expected to announce mass layoffs as early as this week, reports of the debts at Hyundai Heavy Industries (HHI), Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME) show the enormous trouble the three giants are in.

The debts of the three doubled over a five-year period ending in 2015 to KRW23.9trn ($20.68bn), up from KRW10trn at the end of 2010.

DSME is already in a creditor’s led restructuring while HHI and SHI are expected to follow suit soon.
Layoffs at all three yards could hit more than 10,000 people by the end of the year.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Related Posts