STX Group confirmed on Thursday that it has signed a deal to sell STX Finland to a consortium formed by the Finnish government and German shipbuilder Meyer Werft.“The group expects the deal to spur its restructuring efforts to normalize its management,” a company official said, declining to comment on the price. Under the deal, Meyer Werft will secure 70 percent of the yard, while the Finnish state goes home with the remaining 30 percent.The Finnish government reportedly joined the deal to quell

The liquidity crisis at Dongbu Group is deepening as the nation’s 18th-largest business group has difficulty raising funds through asset sales. Dongbu Steel Co, one of the group’s key subsidiaries with 2.6 trillion won in debt, is pushing for a voluntary restructuring deal with its creditors, as POSCO recently rejected an offer to take over the company’s cold-rolled steel plant in Incheon together with Dongbu Power’s lucrative plant in Dangjin.If creditors accept Dongbu Steel’s proposal, the com

Prosecutors have indicted former STX Group chairman Kang Duk-soo over alleged business malpractice and embezzlement, officials said Thursday. Kang was accused of illegally funneling funds from STX Heavy Industries Co., a financially troubled shipbuilder, to support other affiliates in trouble. He was also suspected to have misappropriated company money to bribe political circles. The Seoul Central Prosecutors’ Office said in its interim report that Kang allegedly made undue profits with fabricat

The management of GS Group, said Wednesday that the energy, retail and construction conglomerate would invest 3 trillion won ($2.9 billion) in its core and new businesses this year.The 2014 investments are larger than the average annual amount of around 2 trillion won. The decision came in a second-quarter meeting of group executives, led by GS Group chairman Huh Chang-soo, the group said in a press release. “The global economy faces more uncertainties at the moment. To turn a crisis into an opp

The former head of the financially troubled shipping and shipbuilding conglomerate STX Group was formally detained Tuesday pending trial over alleged embezzlement and business malpractice. Kang Duk-soo, who headed the group from 2003 to February 2014, is accused of funneling the funds of STX Heavy Industries Co., a troubled shipbuilder unit, to illegally support other ailing affiliates, including STX Construction Co. and STX Dalian Co., and misappropriating company money to bribe politicians.The

The Seoul Central District Prosecutors’ Office on Tuesday sought an arrest warrant for Kang Duk-soo, former head of shipping and shipbuilding conglomerate STX Group, on suspicion of embezzlement and business malpractice.Kang, 64, is believed to have funneled the funds of STX’s financially troubled shipbuilding unit to illegally support other ailing affiliates during his tenure as the group’s chief between 2003 and February 2014.He also allegedly used the company funds to bribe politicians. Kang

서울중앙지검은 8일,‘횡령, 배임’ 의혹을 받고 있는 강덕수 (64) 전 STX 회장에 대해 사전구속영장을 청구했다고 밝혔다.강 전 회장은 STX중공업 및 그룹 계열사의 수천억원대에 이르는 분식회계와 업무 상 횡령•배임 등을 주도한 혐의를 받고 있다.검찰은 같은 혐의로 STX 중공업 전 경영진 3명에 대해서도 함께 구속영장을 청구했다. 강 회장은 지난 4일과 6일 두 차례에 걸쳐 검찰로부터 강도높은 조사를 받은 바 있다.검찰은 지난 2월 강 전 회장을 비롯한 전 경영진 5명의 배임과 횡령 혐의에 대해 STX 측의 수사 의뢰를 받고서 ㈜STX•STX조선해양•팬오션 등 그룹 계열사 6∼7 곳을 압수수색하면서 본격 수사에 착수했다. 검찰에 따르면 강 전 회장의 횡령•배임 액수만 3천억원에 육박하며 분식회계 규모는 이를 뛰어넘는 것으로 알려졌다. <관련 영문 기사>Prosecutors seek arrest warrant for ex-STX chiefThe Seoul Central Distr

State prosecutors sought an arrest warrant Tuesday for the former head of the financially troubled shipping and shipbuilding conglomerate STX Group over alleged embezzlement and business malpractice.Kang Duk-soo, who headed the group between 2003 and February 2014, is accused of funneling the funds of STX Heavy Industries Co., a troubled shipbuilder unit, to illegally support other ailing affiliates and misappropriating company money to bribe politicians, prosecutors said.After summoning the 64-

Economists have shown that one way to spur productivity growth of an industrial sector is to clear it of “zombies” ― unproductive and unprofitable companies that need support from their creditors or the government to stay afloat. These nonviable firms hinder a more efficient allocation of resources. By continuing to operate, they use up financial, physical and human resources that could be allocated to more productive companies.Furthermore, they depress economic activity by making it difficult f

Prosecutors resummoned the former head of the financially troubled shipping and shipbuilding conglomerate STX Group on Sunday for questioning over his alleged embezzlement and business malpractice.Kang Duk-soo, who headed the group between 2003 and February 2014, is accused of funneling the funds of STX Heavy Industries, a troubled shipbuilder unit, to illegally support other ailing affiliates and misappropriating company money to bribe politicians.The 64-year-old former chairman appeared at the

The former head of financially troubled shipping and shipbuilding conglomerate STX Group was called in by prosecutors Friday to face questioning over alleged embezzlement and business malpractice. Kang Duk-soo, who headed the group between 2003 and February 2014, appeared at the Seoul Central District Prosecutors’ Office in southern Seoul around 9:20 a.m. to undergo questioning as a suspect in the corruption case. “I apologize for causing the people to worry, and I will sincerely respond to the

As the liquidity of Dongbu Group, a South Korean conglomerate providing steel, insurance and electronics goods, is worsening, creditors have put an ultimatum on the debt-saddled conglomerate to swiftly sell some business units amid a liquidity crisis.Despite a series of warnings in the market, Dongbu chairman Kim Jun-ki has continued to argue since last year that its financial status was not as critical as those of the embattled STX and Tong Yang groups, most of whose units are in the debt-resch

동부그룹이 자구책으로 내놓은 핵심자산 매각방안이 5개월째 이행되지 않자 채권단이 더는 기다려줄 수 없다는 입장을 나타냈다.채권단은 유동성 위기의 동부그룹이 계속 버틸 경우 STX그룹과 동양그룹처럼 막대한 타격을 입을 가능성을 제기하고 있다. 금융감독원 역시 신속한 기업 구조조정을 주문한 상태다.4일 금융권에 따르면 채권단의 한 관계자는 동부그룹의 자구계획 이행 지연에 강한 불만을 드러냈다. 이 관계자는 “동부그룹이 구조조정을 질질 끌고 있다. 김준기 회장이 오너십에 너무 집착하고 있다”고 말했다.그는 또 “이러다가 (핵심계열사를) 못 팔게 될 수도 있다”고 말했다.금융당국도 동부그룹이 구조조정에 속도를 내지 못하자 불쾌한 심정을 감추지 못하고 있다.이와 관련해 금감원과 주채권은행인 산업은행 등은 지난 3일 회의를 통해 동부그룹 처리 문제를 논의한 것으로 알려졌다.동부그룹은 지난해 11월 3조원 규모의 재무구조개선 방안을 밝힌 바 있다. 계열사인 동부하이텍, 동부메탈, 동부제철 인천공

The former head of financially troubled shipping and shipbuilding conglomerate STX Group was called in by prosecutors Friday to face questioning over alleged embezzlement and business malpractice.Kang Duk-soo, who headed the group between 2003 and February 2014, appeared at the Seoul Central District Prosecutors' Office in southern Seoul around 9:20 a.m. to undergo questioning as a suspect in the corruption case."I apologize for causing worry to the people, and I will sincerely respond to the in

Corporate restructuring has again emerged as a pressing issue for the Korean economy as the proportion of companies faltering under heavy debt has reached dangerous levels.Last week, the Korea Development Bank held a large seminar on corporate restructuring to mark its 60th anniversary. The forum offered a chance for top financial regulators and scholars to highlight the need to restructure poorly managed companies.Unfortunately, however, the seminar focused only on large corporations with liqui