Government Mulls Injecting Additional 2 Tril. Won into DSME
The South Korea government is pondering over injecting an additional 2 trillion won into the cash-strapped Daewoo Shipbuilding & Marine Engineering (DSME) because the ailing shipbuilder, the government thinks, is unable to stand on its feet even after the government lent a total of 3.82 trillion won since October 2015 when the government decided to provide 4.2 trillion won to DSME through the state-run Korea Development Bank (KDB).
Industry sources said on March 8 that the government was expected to announce its plan for additional cash injections by late this month. A government official said, "We are considering injecting enough money for the company to pay off bonds coming due next year."
At least 2 trillion won is projected to be provided to the company.