South Korea’s shipbuilding industry, which used to be its main pillar, is on the edge of a precipice now. What is worrisome under the circumstances is the blueprint and orientation of the interested parties in the industry.South Korean banks’ exposure to the sector is more than whopping 70 trillion
STX Offshore & Shipbuilding Co. failed to come out of a state of complete capital impairment even after it used up 4.5 trillion won (US$3.8 billion) of funds received from the creditors in 2013. Accordingly, the creditors are highly likely to put the company under court receivership.Industry sources
Pangyo, the South Korean Silicon Valley, is emerging as one of the most fascinating startup hubs in Asia to connect next information communications technology (ICT) stars to the global market.The Korean government is preparing for establishment of an over 582,000 square feet startup campus in Pangyo
Daewoo Shipbuilding & Marine Engineering (DSME), a troubled South Korean shipyard, started the final touches of its self-rescue plans. The plans include large-scale workforce reduction, wage cuts, non-core asset sales as well as spin-off of its defense unit. The company plans to separate its lucrati
It is predicted that the financial restructuring issue of Samsung Heavy Industries will spread to the entire Samsung Group as its main creditor Korea Development Bank (KDB) and the financial authorities are putting pressure on the group.In Samsung Heavy Industries, Samsung Electronics is the largest
The Korea Development Bank (KDB) requested U.S.-based General Motors (GM) to come up with self-rescue plans for GM Korea which posted the biggest losses in history last year.According to investment banking industry sources on May 15, the KDB recently asked the GM headquarters for financial and accou
Hanjin Shipping Co., South Korea’s largest container carrier, has begun to undergo a creditor-led conditional restructuring program from May 4. Before the launch of the restructuring program(self-regulatory agreement), the company has also carried out the advanced work for negotiations with major sh
Hyundai Merchant Marine’s efforts for business stabilization are expected to bear fruit sooner or later with its charter rate negotiations about to be wrapped up.The negotiations led by Vogo Fund founder Byeon Yang-ho and lawyer Mark Walker at Millstein & Co., who had worked with each other during t
On April 29, South Korea's Financial Services Commission (FSC) chairman Yim Jong-Yong stressed that the South Korean government will be engaged in no coercive corporate restructuring such as a big deal led by itself, claiming that it is far from desirable.“During the financial crisis back in 1998, t
It has been found that most of the burden attributable to the upcoming restructuring of South Korean shipbuilders and shipping companies is on state-run banks.According to industry sources, the five companies in the sectors about to be restructured have a total loan amount of approximately 20 trilli
The South Korean government recapitalizes the Korea Development Bank (KDB) and the Export-Import Bank of Korea (Korea Eximbank) in order to accelerate its corporate restructuring processes in the shipbuilding and shipping industries and prevent a rapid increase in their bad debts ahead of the evalua
Following Hyundai Marine Shipping that is suffering from extreme financial difficulties, Hanjin Shipping Co. also decided to seek a self-rescue measure. As a result, creditors will manage the cash-strapped shipper jointly and enforce the shipper to drive a strong self-rescue plan in return for the p
Mirae Asset Daewoo Securities, former KDB Daewoo Securities, made a capital increase of US$100 million (113.5 billion won) to its subsidiary in New York, the U.S., in order to strengthen the overseas business.The latest movement was made in just six days after Park Hyeon-joo, chairman of Mirae Asset
Korea Development Bank (KDB) is seeking to enter the global project financing (PF) market in earnest, helping domestic firms to push into global markets. KDB Chairman Lee Dong-gul has been stressing the importance of global market expansion through overseas PF after taking office.KDB announced on Ap
Financial authorities and creditors will make Hyundai Merchant Marine Co. (HMM), one of Korea’s vulnerable industries that needed downsizing, will become a subsidiary of Korea Development Bank (KDB). Its largest shareholder Hyundai Elevator will reduce its shares in HMM and financial institutions, i
KDB Asset Management Co., which was acquired by Mirae Asset, said that it will change its company name to Multi Asset Management and appoint Nam Ki-chun, head of the alternative investment division at KDB Daewoo Securities, as new CEO.The new company name shows its will to grow Multi Asset Managemen
Anbang Insurance took over Allianz Life Insurance. Industry insiders pointed out this implies that more and more South Korean insurers can be acquired by Chinese companies over time. "This year's shopping spree by Chinese firms is showing no sign of slowing down. Although the deal (Anbang buying All
Korea Electric Power Corp. (KEPCO) won a solar power plant project with a total capacity of 39MW in Hokkaido, Japan. It is the first time for KEPCO to obtain the order for solar power plant projects abroad.According to industry sources on Apr. 5, KEPCO SPC, whose 80 percent of shares are owned by KE
The Korea Development Bank (KDB) decided to dispose of its equity in 46 non-banking subsidiaries before the end of this year. The goal is 10 more than the previous goal.The firms to be sold within this year are to be selected among the 98 small and medium-sized enterprises and venture firms in which
According to industry sources such as Capital Economics, the value of the South Korean won with respect to the U.S. dollar increased by no less than 8.15% in March this year to show the highest degree of appreciation among all Asian currencies.It was followed by the Malaysian ringgit (7.97%), the Si