Korean banks rush to help out debt-laden DSME

Korean banks rush to help out debt-laden DSME

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.

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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1 Comment

  1. MP Nayar
    July 21, 2015 at 9:59 am

    They have grown too big/and thus find it difficult to manage despite most business in their hands. Something to learn from.