San-eun and Creditors Extend Loan of 2.9 Trillion Won
At Daewoo Shipbuilding & Marine Engineering Okpo Shipyard in Geoje, a worker begins the morning shift with the rising sun. The COVID-19 pandemic has been ongoing for nearly two years. Countries around the world are implementing quarantine policies to overcome it and are putting all their efforts into escaping the disaster situation. The industrial landscape altered by COVID-19 is also adapting quickly. In particular, the business environment for the shipbuilding industry is expected to improve in 2022. With an increase in new orders, shipbuilders' bargaining power on prices has strengthened, and investment capacity for ships to comply with environmental regulations has expanded, welcoming the new year with sparks of improvement. / Geoje ? Photo by Kang Jin-hyung aymsdream@
[Asia Economy Reporter Hwang Yoon-joo] Daewoo Shipbuilding & Marine Engineering (DSME) stated that there is no liquidity issue related to the European Union (EU) Fair Trade Commission's decision to prohibit the corporate merger.
On the evening of the 13th, DSME said, "There is nothing to comment on regarding the EU Fair Trade Commission's decision," adding, "Although the sale plan has fallen through, contrary to concerns, there is no situation requiring additional liquid funds this year."
DSME further explained, "Previously, creditors including the Korea Development Bank extended loans amounting to 2.9 trillion KRW until March next year," adding, "These are 'negative loans' in nature, so even if liquidity is needed, preparations are in place."
Meanwhile, on the same day, the EU Fair Trade Commission prohibited the corporate merger between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering, citing concerns over a monopoly in the LNG (liquefied natural gas) ship market if the two companies merged.
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