[Asia Economy Reporter Ki-min Lee] Doosan Group, which is receiving an additional 1.2 trillion KRW in support from creditors, stated, "This support has enabled us to resolve Doosan Heavy Industries & Construction's liquidity issues," and expressed "gratitude to the creditors."
According to Doosan Group on the 2nd, following the creditors' announcement of the additional 1.2 trillion KRW support the previous day, Doosan stated, "We plan to secure more than 3 trillion KRW through asset sales, paid-in capital increases, and cost reductions as quickly as possible and will strive to achieve the best results."
Doosan Co., Ltd., the parent company of Doosan Heavy Industries & Construction, and Doosan Group Chairman Park Jeong-won, along with major shareholders of Doosan Group, plan to participate in the capital increase of Doosan Heavy Industries & Construction as part of responsible management.
Doosan Group explained, "We plan to repay the funds received from the creditors without fail," adding, "Once the repayment is completed, Doosan Heavy Industries & Construction will reduce its borrowings by more than 3 trillion KRW, significantly improving financial soundness, including a decrease in the debt ratio."
Earlier, the Korea Development Bank and the Export-Import Bank of Korea provided an emergency support of 1 trillion KRW to Doosan Heavy Industries & Construction at the end of March. Subsequently, the Export-Import Bank supported 600 billion KRW for foreign currency bond repayment, and the Korea Development Bank and the Export-Import Bank provided an additional 800 billion KRW for operating funds and other purposes. Including this latest 1.2 trillion KRW support, Doosan Heavy Industries & Construction has received a total of 3.6 trillion KRW in support.
Regarding the future business direction of Doosan Heavy Industries & Construction, Doosan explained, "Based on a stable financial structure, Doosan Heavy Industries & Construction plans to accelerate a revolutionary restructuring of its business portfolio, focusing on gas turbine power generation and renewable energy businesses."
It added, "While expanding existing businesses such as wind power and energy storage systems (ESS), it will also promote eco-friendly hydropower projects, solar photovoltaic EPC projects, and enter the hydrogen industry, including hydrogen production and liquefaction."
A Doosan Heavy Industries & Construction official said, "With the government's attention and support from creditors, we have an opportunity to enhance financial soundness and strengthen business momentum," adding, "As an energy-specialized company, we will focus our capabilities on future innovative technology businesses."
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