Korea’s big-three shipyards are exploring their respective ways to stay afloat. Dawoo Shipbuilding & Marine Engineering is escaping from a life-or-death situation thanks to the Korean government’s financial support. Hyundai Heavy Industries is also strengthening its self-survival capabilities.
For Samsung Heavy Industries, its restructuring is still under way. Under the terms of the agreement it signed with the state-run Korea Development Bank last year, Samsung should dispose of its non-core assets, including Geoje Samsung Hotel, and reduce payrolls by more than 2,000 by the end of next year.
Fortunately, however, Samsung’s financial condition is somewhat improving, with its debt-to-equity ratio declined to 174 percent in late 2016 from 306 percent in late 2015. In addition, the shipyard would secure a new liquidity of up to 2 trillion won by the end of this year by delivering 54 ships and offshore plants.
Samsung Heavy Industries, which relied heavily on offshore plants, has faced financial pressure due to some shipowners’ request for delay in deliveries of such offshore plants.