AsiaShipyards

Korea Development Bank in the firing line for its handling of DSME

Politicians in Seoul are demanding an inquiry into state-run Korea Development Bank’s (KDB) handling of troubled shipyard Daewoo Shipbuilding & Marine Engineering (DSME).

A $1.3bn accounting fraud has been revealed at the shipbuilder, compounding fraught difficulties at the loss-making firm which is going through a painful restructuring.

Kim Jong-in, the interim leader of the main opposition Minjoo Party of Korea, today called for a parliamentary hearing as public anger grows at the state’s decision to bail out much of Korean maritime to the tune of billions of dollars.

“The public is increasingly critical of whether KDB is conducting its industrial restructuring-related duties properly,” Kim said.

“The KDB must reveal everything about past developments at the hearing, and must clarify what its role in restructuring will be.”

A state auditor has accused KDB of “gross negligence” and being partially responsible for fuelling the crisis at DSME.

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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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