SEOUL, Feb. 20 (Korea Bizwire) — South Korea’s leading shipbuilders and one of its shipping firms have been mired in losses due to unsuccessful restructuring efforts, industry data showed Tuesday.
The cumulative net loss of Daewoo Shipbuilding & Marine Engineering Co., a major South Korean shipbuilder, came to more than 7 trillion (US$6.5 billion) from fiscal year 2012 through 2016, according to Chaebul.com, which monitors the activities of business groups.
Hyundai Heavy Industries said its net loss came to 93.4 billion won in 2017, compared with a net profit of 15.5 billion won in 2016.
Samsung Heavy Industries Co. said its net loss grew to 340.7 billion won in 2017 from a loss of 138.8 billion won in 2016.
The shipyard also said its operating loss came to 524.2 billion won in 2017, compared with an operating loss of 147.2 billion won in 2016.
In December, Samsung Heavy forecast its operating loss for this year to narrow to 240 billion won.
South Korean shipbuilders have struggled with an oversupply of vessels and declining orders since the 2008 financial crisis.
Meanwhile, Hyundai Merchant Marine Co., a major South Korean shipping firm, said its net loss came to 1.208 trillion won in 2017, compared with a net loss of 484.1 billion won in 2016.
The cumulative net loss of Hyundai Merchant Marine came to nearly 2.8 trillion won from fiscal year 2012 to fiscal year 2016 due to failed restructuring efforts, according to Chaebul.com.