'Rehabilitation Proceedings' Daewoo Shipbuilding & Marine Engineering Construction, Women's Golf Also Includes Creditors

Last Year's KLPGA Tour Cancellation Penalty Case
Sports World Shaken by Pro Basketball Team Sale Push and More

The court accepted the rehabilitation petition filed by the Daewoo Shipbuilding & Marine Engineering Construction Labor Union and initiated rehabilitation proceedings, which is also impacting the sports world, including golf and basketball.

According to the legal community on the 8th, the Seoul Rehabilitation Court decided to commence rehabilitation proceedings for Daewoo Shipbuilding & Marine Engineering Construction on the 6th, appointed a manager, and ordered the submission of lists of rehabilitation creditors, secured rehabilitation creditors, and shareholders by the 20th. A total of 463 entities were already listed as creditors of Daewoo Shipbuilding & Marine Engineering Construction, including the Korea Ladies Professional Golf Association (KLPGA) Tour.

Daewoo Shipbuilding & Marine Engineering Construction had planned to hold the Elkrew Pro Celebrity Tournament with a total prize money of 700 million won in September last year in cooperation with the KLPGA. However, about ten days before the opening, the tour announced that the tournament was canceled due to the organizer’s circumstances. According to the contract, the KLPGA is entitled to receive a penalty fee amounting to 75% of the total prize money, which is 525 million won, but this has not been settled.

With the initiation of the court’s rehabilitation proceedings, the use of all assets of Daewoo Shipbuilding & Marine Engineering Construction is prohibited. In professional basketball, Day One Sports, a corporation founded last year with Daewoo Shipbuilding & Marine Engineering Construction as its parent company, is currently trying to sell the Goyang Carrot professional basketball team after less than one season. This is because support for the team has reached its limit as the parent company has entered rehabilitation proceedings.

Earlier, Kim Yong-bin, chairman of Daewoo Shipbuilding & Marine Engineering Construction, resigned from his positions as president of the Korea Curling Federation and director of the Korean Sport & Olympic Committee in early last month, citing deteriorating business conditions, causing ripples throughout the sports community.