Seoul: Korean banks are rushing to the aid of one of the nation’s top shipyards. Daewoo Shipbuilding & Marine Engineering (DSME) is seeking an emergency KRW1trn ($863m) in new loans as it is expected to report very steep losses in its latest quarterly results. Its lead creditor, Korea Development Bank, as well as the Export-Import Bank of Korea are expected to stump up cash while DSME’s new ceo, Jung Sung-Leep, has said he will initiate a programme of cuts at the yard to curtail losses.
DSME is expected to sell off assets and layoff staff.
The nation’s top three yards – DSME, Samsung Heavy and Hyundai Heavy – are all in the red this year, largely as a result of the drop in the price of oil and their heavy exposure to offshore construction.