Trial of Strength
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 shareholder with a shareholding of 17.62% while Samsung Securities and Samsung Electro-Mechanics own 3.38% and 2.39%, respectively.
As a matter of fact, Samsung Heavy Industries has no significant problem as of now. At the end of March this year, its cash and cash equivalents amounted to 1.0886 trillion won whereas its debt ratio was as low as 254%. The problem is the future. Samsung Heavy Industries obtained no shipbuilding order at all last month and the same can be repeated in the following months of this year. In the meantime, its banking credit balance rose from 13.9034 trillion won to 14.3128 trillion won between December 2015 and April 2016.
The Samsung Group has yet to express its opinion with regard to asset disposal or recapitalization though. In addition, rumors are circulating that the Samsung Group will dispose of Samsung Heavy Industries although the group is denying the rumor. Under the circumstances, the tension between the business group and the creditors is likely to be on the rise.