Top financial regulator to closely monitor shipbuilders’ restructuring

By Korea Herald

Published : June 14, 2016 - 17:54

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[THE INVESTOR] Korea’s top financial regulator will closely oversee the ongoing industry-wide restructuring process of the country’s debt-laden shipbuilders to ensure that the companies fully implement their overhaul plan worth over 10 trillion won.

Financial Services Commission Chairman Yim Jong-yong said Tuesday he will hold a biweekly meeting to check whether top local shipyards are making sufficient efforts to normalize their businesses.

Daewoo Shipbuilding & Marine Engineering.

“In the first meeting, the chairman plans to underline that the shipbuilders should thoroughly complete their promised self-help measures, including job cuts and asset sales, to avoid being placed under court receivership,” a FSC official said.

The country’s top three shipbuilders, Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering, have drawn up self-rehabilitation worth 10.35 trillion won including asset sales and workforce reduction, in order to stay afloat amid a drop in new orders.

The shipyards are required to submit their detailed action plans by next week to their creditors, the FSC said.

By Park Han-na (hnpark@heraldcorp.com)

Korea Herald
Korea Herald
Articles by Korea Herald

Top financial regulator to closely monitor shipbuilders’ restructuring

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