Daewoo Shipbuilding & Marine Engineering Construction Accelerates Management Normalization with Appointment of New CEO Ryu Youngsoo

Drive for Public Project Orders and New Businesses Announced... CEO Ryu Youngsoo: "Tremendous Sense of Responsibility"
Appointment of Expert Ryu Youngsoo... "Securing Competitiveness through New Business Development"
Opportunity for Recovery Secured

Daewoo Shipbuilding & Marine Engineering Construction has laid the groundwork for management normalization following the court's recent approval of its rehabilitation plan, and has begun reorganizing its structure by appointing a new CEO.

On the 24th, Daewoo Shipbuilding & Marine Engineering Construction announced that at the regular shareholders' meeting held on the 22nd, Ryu Youngsoo, head of the acquisition planning team, was appointed as the new CEO. CEO Ryu is a construction expert with over 30 years of experience in public project bidding, construction claims, and government relations, having started his career at Kisan, the construction division of Kia Group, and later working at Shinhan General Construction, among others. He is currently serving as a member of the Construction Human Resources Development Committee and as an arbitrator at the Korean Commercial Arbitration Board.

CEO Ryu stated, "I feel a great sense of responsibility taking on this important role during such a challenging time for the construction industry," and added, "I will restore Daewoo Shipbuilding & Marine Engineering Construction's status by strengthening internal personnel and reorganizing the organization, and enhance competitiveness by expanding public project orders and discovering profitable new businesses."

Daewoo Shipbuilding & Marine Engineering Construction recently secured a foundation for recovery with the court's approval of its rehabilitation plan. The 51st Civil Division of the Suwon Bankruptcy Court (presiding judge Kim Sangkyu) established creditor protection provisions and approved the rehabilitation plan submitted by the company in September. This approval came about six months after the commencement of rehabilitation proceedings in March. The court stated, "If the plan is rejected, the company will inevitably go bankrupt and the distribution rate to rehabilitation creditors will be only 0%. Through rehabilitation, debt repayment becomes possible, and the going-concern value of the company exceeds its liquidation value."

Daewoo Shipbuilding & Marine Engineering Construction entered its first rehabilitation process at the end of 2022 due to allegations of embezzlement and breach of trust, as well as a liquidity crisis. Although the company temporarily exited rehabilitation in January of this year through a merger and acquisition (M&A), continued financial deterioration caused by large-scale damage claims led to the filing for a second rehabilitation procedure in February. With this court-mandated approval, the company has cleared the hurdle of its second rehabilitation. The approval of this rehabilitation plan reflected factors such as securing 15.2 billion won in acquisition funds through M&A, the possibility of debt repayment, the need to maintain employment, and the importance of protecting the construction industry ecosystem.