More losses on the cards at DSME

More unexpected losses at Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME) cannot be ruled out, its lead creditor warned yesterday.

Korea Development Bank (KDB) chairman Hong Ki-Taek was questioned yesterday at the National Assembly whether the bank had uncovered any further losses while carrying out due diligence on the yard. “There is a chance. But we cannot be sure yet,” he said.

Hong said the bank would continue to support DSME. “As soon as the due diligence result is out, we will start figuring out the financial aid structure and the funding amount. KDB will take the lead in the support,” he said.

DSME has been hit by an alleged accounting fraud, plus the downturn in the offshore sector, which has seen the Korean major yard post dramatic losses this 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.
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