Hanwha Group Chairman Kim Seung-youn (Yonhap)
SEOUL, Jan. 2 (Korea Bizwire) — Hanwha Group will push to develop Daewoo Shipbuilding & Marine Engineering Co. (DSME) into a major global enterprise after acquiring the troubled shipyard, the group chief said Monday.
“Hanwha will make efforts to promote DSME as a major global business area that could represent South Korea and take the lead in national development,” Chairman Kim Seung-youn said in a New Year’s message.
In mid-December, Hanwha Group signed an agreement with DSME to take over the embattled shipbuilder, paving the way for a smooth privatization after multiple unsuccessful attempts, which began in the late 1990s following the collapse of DSME’s parent firm, Daewoo Group.
Under the deal, Hanwha Aerospace and five other Hanwha affiliates will acquire a 49.3 percent stake and managerial control in DSME through a 2 trillion-won (US$1.58 billion) rights offering by the shipbuilder.
Hanwha plans to finalize the acquisition in the first half of this year. DSME posted a cumulative net loss of 1.2 trillion won for the three quarters of 2022.
Kim said “Hanwha will seek to support and nurture its defense and energy businesses that should be self-reliant for the sake of national existence.”
Hanwha, the No. 7 conglomerate in South Korea, was founded in 1952 as an explosives maker and has diversified its businesses, ranging from chemicals, energy, and defense to retail and financial.
Its assets had come to 80.3 trillion won as of April with 91 affiliates under its wing.
(Yonhap)
