KDB on standby to save Hanjin Heavy

State-run Korea Development Bank is on standby once again to step in and save one of the nation’s shipbuilders.

Hanjin Heavy Industries & Construction, South Korea’s oldest shipbuilder, said Wednesday that its stock trading has been suspended until the end of March due to capital erosion.

The shipyard also said losses leapt to KRW1.32trn won ($1.18bn) last year, from a loss of KRW278bn won a year earlier, hit hard by its Philippines unit, HHIC-Phil, seeking court rehabilitation.

Hanjin Heavy said it would carry out debt-for-equity swaps with its creditors, including state-run KDB, the bank that has done much to save a number of yards in recent years, most notably Daewoo Shipbuilding & Marine Engineering (DSME).

KDB said yesterday it would help Hanjin Heavy negotiate with a number of Filipino financial institutions who are owed vast sums of money by the Korean yard.

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.
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