Because of the global shipbuilding industry long-term downturn, Korean shipbuilding enterprises of overseas subsidiaries of the huge debt owed.
Daewoo shipbuilding, Hyundai, Samsung Heavy Industries three enterprises ship a total of 34 overseas subsidiaries debt consolidation of up to 53600 won ($4 billion 580 million), growth of 28.7% in 2010 than the peak period of shipbuilding industry.
The Daewoo shipbuilding subsidiary owed 21800 billion won, an increase of 43.2% more than five years ago; Samsung subsidiary debt is 12600 billion won, more than five years ago, an increase of nearly two times; modern heavy overseas subsidiary debt is 19100 billion won, 13.4% less than five years ago.
The three ship enterprises and overseas subsidiaries of assets and liabilities for the average rate of 548.9%, 266.1 percentage points higher than five years ago. In addition, the debt ratio of nearly half of the 34 overseas subsidiaries in more than 200%. Among them, the debt ratio of Hyundai Heavy Industries in Vietnam soared to 6250%, Samsung Heavy Industries in Nigeria subsidiary liability ratio of 3234.3%.
In a huge loss of South Korean shipping companies are receiving the creditors and government led restructuring of debt, to lay off and sell non core assets and other initiatives, efforts to reduce costs.
Shipbuilding industry was once regarded as a pillar industry of economic growth and employment opportunities in South Korea, but with the global shipbuilding industry downturn, rising costs, the ship suffered huge losses. Three ship enterprises with a loss of 77000 yuan last year, this is the first time in the history of the Korean shipbuilding three ship enterprises reported a loss of collective phenomenon.
Source: international shipping network