Hyundai Heavy Industries has been levied 120 billion won ($100 million) in taxes, according to industry sources on Wednesday.

The country’s tax authorities reportedly informed Hyundai Heavy of the additional tax imposition. Hyundai Heavy is considering filing a request of review over the matter.


The move comes as the South Korean shipyard struggles to extricate itself from debt after suffering massive losses for a second consecutive year on increased costs and an industry-wide slump.

For the past two years, Hyundai Heavy has suffered a net loss of 3.6 trillion won. The shipyard is aiming to swing back to the black this year.

The nation’s big three shipyards -- Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries -- racked up a combined loss of 7.7 trillion won last year, due to increased costs from a delay in the construction of offshore facilities and order cancellations.

It was the first time that all three shipyards posted losses.

Lower oil prices have been leading to a drop in demand for new ships and offshore facilities, and Chinese rivals have scooped up a large slice of orders for smaller ships, in particular.

Analysts say the business slump is likely to continue into this year, as the global shipbuilding industry is unlikely to turn around anytime soon.

(khnews@heraldcorp.com)