Daewoo Shipbuilding & Marine Engineering has called off its plan to move into Magok Industrial Complex in Gangseo District, western Seoul, which is expected to become the largest R&D complex in South Korea.
The shipbuilder, which recorded a record operating loss of 3.17 trillion won ($2.68 billion) in the second quarter, took the decision to maximize liquidity amid the financial crisis, according to reports.
The shipbuilder initially planned to invest 700 billion won to build a global shipbuilding and offshore center by 2017, developing smart vessel and high-tech defense industrial technologies.
DSME had paid 200 billion won to the Seoul city government for a 61,232 square-meter plot of land, and is now trying to recoup the land cost due to the pullout decision.
By Suk Gee-hyun (firstname.lastname@example.org)