Home

The Korea Herald

Latest news

Most Popular

  1. 1

    Contentious grain bill put directly to plenary meeting for vote

    Contentious grain bill put directly to plenary meeting for vote
  2. 2

    Yoon's approval rating plunges to all-time low

    Yoon's approval rating plunges to all-time low
  3. 3

    Will tug-of-war between doctors, government end soon?

    Will tug-of-war between doctors, government end soon?
  4. 4

    Climate impacts set to cut 2050 global GDP by nearly a fifth

    Climate impacts set to cut 2050 global GDP by nearly a fifth
  5. 5

    Trilateral talks acknowledge ‘serious’ slumps of won, yen

    Trilateral talks acknowledge ‘serious’ slumps of won, yen
  1. 6

    [Graphic News] More Koreans say they plan long-distance trips this year

    [Graphic News] More Koreans say they plan long-distance trips this year
  2. 7

    [KH Explains] Hyundai's full hybrid edge to pay off amid slow transition to pure EVs

    [KH Explains] Hyundai's full hybrid edge to pay off amid slow transition to pure EVs
  3. 8

    North Korea removes streetlights along cross-border roads with South

    North Korea removes streetlights along cross-border roads with South
  4. 9

    Russia's denial of entry of S. Korean national unrelated to bilateral ties: Seoul official

    Russia's denial of entry of S. Korean national unrelated to bilateral ties: Seoul official
  5. 10

    Farming households dip below 1m for first time in 2023

    Farming households dip below 1m for first time in 2023
소아쌤

Former chief of KDB questioned over Daewoo Shipbuilding crisis

By KH디지털2

Published : Feb. 27, 2017 - 14:47

    • Link copied

A former head of South Korea's state-run Korea Development Bank was questioned by prosecutors Monday in connection to management troubles at cash-strapped Daewoo Shipbuilding & Marine Engineering Co.

Hong Ky-ttack appeared at the Seoul Central District Prosecutors' Office in southern Seoul to undergo questioning after a local civic group filed a complaint against him in June last year. 

Hong Ky-ttack, a former head of the state-run Korea Development Bank (KDB), arrives at the Seoul Central District Prosecutors' Office to undergo questioning on Feb. 27, 2017, in connection to management troubles at cash-strapped Daewoo Shipbuilding & Marine Engineering Co. (Yonhap) Hong Ky-ttack, a former head of the state-run Korea Development Bank (KDB), arrives at the Seoul Central District Prosecutors' Office to undergo questioning on Feb. 27, 2017, in connection to management troubles at cash-strapped Daewoo Shipbuilding & Marine Engineering Co. (Yonhap)

People's Solidarity for Participatory Democracy accused Hong, who led KDB from 2013 to 2016, of business malpractice for lending the shipyard money without thoroughly checking its financial situation.

Hong's predecessor Kang Man-soo is standing trial for similar allegations.

The shipyard should pay off or refinance up to 1 trillion won ($869 million) worth of debts that mature this year, but the shipbuilder's financial status is not good enough to deal with the situation amid a dearth of new orders and a delay in the delivery of drill ships.

Earlier this month, KDB, the main creditor for the shipyard, ruled out any additional cash injections into the company, which means that Daewoo Shipbuilding has to pay off or refinance the maturing debt on its own.

South Korean shipbuilders have been under severe financial strain since the 2008 global economic crisis, which sent new orders tumbling amid a glut of vessels and tougher competition from Chinese rivals. (Yonhap)

More from Headlines