Korea Times News

13 May 2019

"Big Three" Korean Yards Vie for Qatari LNG Ships

Pic: Qatargas

The state-run Qatar Petroleum (QP)  has revealed plans to order 60 new LNG carriers preferably from South Korean shipyards. Qatar's energy minister, Saad Sherida Al-Kaabi, who is also CEO of Qatar Petroleum, said the company plans to order 60 new LNG carriers.QP has sent invitations to tender reserve shipbuilding capacity for LNG carriers to major shipbuilders across the world, including HHI, DSME and SHI.Most LNG carriers owned by Qatar were built by Korea’s top three shipbuilders…

16 Apr 2019

Hyundai Wins New Order for LNG Vessel

Image: Hyundai Heavy Industries

South Korean shipbuilding giant Hyundai Heavy Industries (HHI) has won an order for a 174,000 cbm liquefied natural gas (LNG) carrier.With the latest contract with a Greek shipowner, the shipbuilder has secured five orders in two weeks, worth a total 700 billion won ($616 million).According to HHI, the latest LNG carrier newbuild will be equipped with a Hi-ALS air lubrication system on the bottom of the hull to improve fuel consumption. The air lubrication system is expected to cut fuel consumption by eight percent.A report in Korea Times…

04 Dec 2018

Hyundai Merchant Marine to Say Good Bye to 2M Alliance?

Image: Hyundai Merchant Marine

South Korea's largest shipping firm Hyundai Merchant Marine (HMM) is likely to part ways with the 2M Alliance which will expire in April 2020 and join  a new ocean alliance said a local media report.According to a report in Business Korea, the 2M Alliance (consists of Maersk Line and MSC) is disadvantageous to HMM as it is not a full member of the alliance. HMM's status fell as the 2M Alliance inked a partnership deal with Israel's Zim Integrated Shipping Services, the report…

23 Apr 2017

DSME Deal Non-starter

File Photo: Daewoo Shipbuilding and Marine Engineering

The creditors of Daewoo Shipbuilding & Marine Engineering (DSME) still remain undecided over afor the shipyard's latest deal, further complicating troubles for one of the country's major shipyards, Yonhap reported. DSME  clinched a US$250 million deal to build three very large crude carriers (VLCCs) on April 4. Under the deal with Maran Tankers Management, a unit of Greece's largest shipper Angelicoussis Shipping Group, Daewoo Shipbuilding will deliver the 318,000-ton VLCCs by 2018.

28 Dec 2016

FSC Denies Mergers Between Big Three Shipbuilders

Image: Daewoo Shipbuilding & Marine Engineering Co

The chairman of South Korea's Financial Services Commission, Yim Jong-Yong, reiterated  that Daewoo Shipbuilding and Marine Engineering (DSME) would not be merged with Samsung Heavy Industries (SHI) and Hyundai Heavy Industries (HHI), according to a report in Korea Times. The Big Three companies are all under restructuring and a potential 'big deal' will harm all of them, said Yim. A precondition for a big deal is all of those companies undergo restructuring thoroughly and stand on their own. However, they are not in such a condition, he added.

05 Dec 2016

Hyundai Near Deal With Iran for 10 Ships

Photo: Hyundai Heavy Industries Co

Hyundai Heavy Industries Co. (HHI), a major shipyard in South Korea, looks set to clinch a deal with Iran to supply 10 ships, says a report in Yonhap. The contract, valued at USD650 million, will see Hyundai supply the Islamic Republic of Iran Shipping Lines, (IRISL) with four 14,400 TEU container ships and six 50,000 DWT product tankers, the Korea Herald reported. The vessels are expected to be delivered to Iran in the third quarter of 2018. If signed, the contract will be Iran's first deal with a foreign shipbuilder since the lifting of international sanctions on the Middle Eastern nation.

22 Aug 2016

Is DSME Facing Delisting?

Photo: DSME Co.,Ltd

South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME),  faced with risks of being delisted from the stock market due to capital erosion, is seeking measures for survival, says a report in Korea Times. DSME has fallen into the state of complete capital impairment after taking a net loss of more than 1 trillion won in the second quarter. If this state continues until the year's end, the company's stock would be delisted from the market. The company may be kicked out of the main bourse KOSPI if it fails to escape full-scale capital erosion.

03 Aug 2016

Is Hanjin Shipping Going Into Court Receivership?

Image: Hanjin Shipping

According to a latest report in Korea Times, South Korea's biggest container carrier Hanjin Shipping's efforts to settle the rescheduling deadlines for financing ships and reducing charter fees before the end of July has not yet be resolved. This situation is raising concerns over the possibility that the nation's top shipping line may go into court receivership. Or, Hanjin may get a month's extension from creditor banks of an August 4 deadline of a voluntary restructuring agreement…

18 Jul 2016

HMM May Hire Foreign CEO for Revival

Photo: Hyundai Merchant Marine

Hyundai Merchant Marine (HMM) will start the process to appoint a new chief executive officer (CEO) when Hyundai Group loses control on Aug. 5, reports Korea Times quoting un-named industry sources. The challenged shipper will begin a new chapter in its 40-year history, breaking free from Hyundai Group and becoming a subsidiary of Korea Development Bank (KDB). KDB is bent on installing a new leadership at the shipping line and is open to hiring a foreign chief executive. To make a pool of candidates, the creditor reportedly appointed a number of executive search firms.

14 Jun 2016

HMM-Hanjin Marriage on Anvil

Image: HMM-Hanjin

The Korean government has said that  it will consider merging ailing Hyundai Merchant Marine (HMM) and Hanjin Shipping should they successfully normalize their management, according to The Korea Times. "Once the normalization program for the two shipping companies is wrapped up, the government will consider various plans including the merger of the companies," said Financial Services Commission (FSC) Chairman Yim Jong-yong. He said, “The possibility of the merger is not so different from the direction of our restructuring plans for shipping companies revealed earlier.

13 Jun 2016

STX Shipbuilding Struggles to Survive

Image: STX Offshore & Shipbuilding Co Ltd

STX Offshore & Shipbuilding may be put under a court-led restructuring scheme, paving the way for the shipyard to avert liquidation, says a report in Korea Times quoting local court. Last month, STX Shipbuilding, once Korea's No. 4 shipbuilder, filed for receivership to stay afloat as its creditors decided to end a similar rehabilitation program for the shipbuilder. The shipbuilder is required to submit its self-rescue plan to the Seoul Central District Court by Sept. “It is regrettable…

02 Jun 2016

HMM to Join New Shipping Alliance

File Photo: Hyundai Merchant Marine Co

Korea Times says that Hyundai Merchant Marine (HMM) will join a new global shipping alliance, as the cash-strapped shipper has successfully reached a debt-rescheduling deal with its bondholders. HMM announced that it has reached a resolution with holders of all five bond issues that are maturing in 2016 and 2017. South Korea’s second largest shipping line had held meetings with holders of the 177-2, 179-2 and 180 issues on 31 May, and holders of the 176-2 and 186 issues on 1 June.

09 May 2016

No Merger for Ailing Korean Shipmakers

Photo: Hyundai Heavy Industries

The South Korea government plans to drop its forceful measures to push ailing local shipbuilders to merge with each other as mergers or additional cash outlays to Hyundai Heavy Industries (HHI), Samsung Heavy Industries (SHI) and Daewoo Shipbuilding and Marine Engineering (DSME) are unlikely to boost their bottom line, reports Korea Times. The Korean ship buildes are under heavy pressure on accumulating debt and  zero new building orders in April. The creditors have been urging…

05 Apr 2016

S. Korean Shipyards Order Books Empty?

Image: Hyundai Heavy Industries

The global slump in the shipbuilding industry means that South Korea's ship yards have to look far and wide for new orders. Combined, the three major yards have only received one order in the first quarter of the year. Daewoo Shipbuilding & Marine Engineering (DSME) and Samsung Heavy Industries (SHI) have received zero new shipbuilding orders, according to sources quoted by local media Yonhap. Hyundai Heavy Industries (HHI) is the only one among the three to have landed a KRW150 billion ($130.6 million) order in March to build two petrochemical tankers.

06 Dec 2015

KAMCO Becomes White Knight for Shipping

KAMCO Executive Director Lee Jong-Jin (right), DVB Bank Executive Director Maarten Vis (left) and SW Shipping CEO Kim Gyeong-deuk (center) pose with the signed “Shipping Fund for Korean Tonnages 1 and 2” in April 2015. Photo: KAMCO

Acquiring ships from financially troubled shipping companies will remain one of the mainstay jobs handled by South Korean finance house Korea Asset Management Corporation (KAMCO) next year, reports Korea Times. The company has bought 33.3 billion won worth of assets from two SMEs in the January-October period and plans to acquire assets valued at 40 billion won from two to three SMEs by December, a move to give relief to financially troubled companies, KAMCO Chairman Hong said in a press conference on Dec.

23 Oct 2015

KT to Manage Massive Submarine Cable Network

Image: KT Corp.

Korean Telecommunications provider KT has been named the key operator of the world's largest submarine network cable, New Cross Pacific (NCP). Korea's dominant fixed-line operator said it will run a network center to control the submarine cable which helps connect network systems in Asia-Pacific countries to the North American region. The company said it will start operation of the 14,000-kilometer-long NCP cable in December 2017. The purpose of the NCP Project is to form a submarine cable network with a data processing capacity of about 80 Tbps across the Pacific Ocean.

17 Sep 2015

Samsung Companies Consider Merger Again

Image: Samsung Engineering

South Korean shipbuilder Samsung Heavy Industries Co will try again to merge with sister company Samsung Engineering Co Ltd later this year, reports Korea Times. Samsung Engineering CEO Park Jung-heum has said he will once again pursue a merger talk. "Before pushing for the deal, we need understanding from the financial markets, which we believe is a key condition," he told local reporters. Samsung Heavy's planned $2.5 billion takeover of Samsung Engineering collapsed in November due to shareholder opposition.

04 Jun 2015

Hyundai Heavy Retirement Program Back-Burnered

 Photo: Hyundai Heavy Industries Co., Ltd

Hyundai Heavy Industries (HHI) will stop dismissing employees through voluntary retirement plans and pay each of their workers a special bonus of 1 million won ($910), the company CEO said. The Korea Times quoted a statement addressed to employees by HHI CEO Kwon Oh-gap that HHI will stop dismissing employees through voluntary retirement plans and pay each of their workers a special bonus of 1 million won ($910). Kwon, who took over in September, said that Korea's largest shipbuilder will no longer introduce voluntary retirement programs.

23 Feb 2015

Korean Shipbuilding Investment Creating Risk for Government: OECD

Two of Korea's major shipbuilding financiers are creating fiscal risks for the government due to the shipbuilding industry's struggles, the Organization for Economic Cooperation and Development (OECD) warned yesterday. The report comes just days after Korean shipyards retook the number one spot in global compensated gross tonnage (CGT) delivered, after delivering 12.1m in CGT in 2014. Korea had the number one spot from 2002 to 2009, until falling to second behind China in 2010, the Maritime Executive reported. The Korea Times said that two-state owned export credit agencies, Korea Exim Bank and K-Sure, were singled out as having a problematic level of investment in an industry that is increasingly struggling to pay its debts.

13 Jan 2015

DSME Rolls Out World's Largest Containership

Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) has named the MSC Oscar, which has claimed the title of the world’s biggest containership. After the christening ceremony the MSC Oscar departed for Busan. The vessel has a capacity of 19,224 containers, and is the equivalent of four football stadiums in length with the nominal capacity of 19,224 TEU. The prestigious title has been taken over from China Shipping’s CSCL Globe, boasting 19,100 teu, which is currently on its maiden voyage in Europe. A report in Korea Times says that it was the first vessel of the three that China's Bank of Communications has ordered to charter to Swiss container shipping line Mediterranean Shipping Company (MSC).

29 May 2014

South Korea's Daewoo & SKT in 'Smart Ship' R&D Project

Daewoo Shipbuilding & Marine Engineering (DSME), the world's second-largest shipbuilder, and Korea's top mobile carrier, SK Telecom (SKT), have teamed up to develop ICT-based "smart ships" reports the Korea Times. SKT has signed a memorandum of understanding with DSME to cooperate in a research and development (R&D) venture to build the high-tech, next-generation ships. The vessel will be equipped with a global telecommunication network based on navigation and monitoring systems, while all the on-board services will be converged onto a single network. Under the alliance, SKT will provide ICT guidelines, optimized blueprints and R&D resources, while DSME will share the needs of ship owners and smart ship-related research achievements.

20 Feb 2014

DSME Opens Warship Construction R&D Center

Center opening: Image courtesy of DSME

Daewoo Shipbuilding & Marine Engineering (DSME), which claims to be the world’s second-largest shipbuilder, has opened a research and development center specializing in warships, reports the Korea Times. The center is compromised of 50 researchers in four groups, who will conduct studies on submarines and warships. In addition, the company plans to strengthen R&D facilities at the center by constructing a dedicate building in Mago, Seoul by 2017. Pictured: Ko Jae-ho, center, CEO of Daewoo Shipbuilding & Marine Engineering…

02 Jan 2014

Korea Shipbuilders May See Mild 2014 Recovery: Analysts

The nation’s major shipbuilders are expected to undergo a mild recovery on the back of a pickup in demand for commercial vessels and liquefied natural gas (LNG) carriers, reports 'The Korea Times' as informed by experts and analysts. The analysts forecasted that the nation’s leading builders such as Hyundai Heavy Industries (HHI), Samsung Heavy and Daewoo Shipbuilding and Marine Engineering (DSME) are well positioned to win more premium vessels ahead of their Chinese and Japanese rivals next year. Particularly given that the shipbuilders are currently engaged in developing their profits by lowering their reliance on conventional and unprofitable vessels. HHI, Samsung and DSME forecast that they will win $24.3 billion, $13 billion and $13.1 billion worth of orders, respectively, this year.

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