Despite opposition, KDB plans to push ahead with HHI-Daewoo deal

Asia's Tech News Daily

Despite opposition, KDB plans to push ahead with HHI-Daewoo deal

Korea Development Bank Chairman Lee Dong-gull speaks at a government audit held at the National Assembly, Friday. Korea Times photo by Bae Woo-han

By Kim Hyun-bin

State-run Korea Development Bank (KDB) and Hyundai Heavy Industries (HHI) have encountered major hurdles in the shipbuilder’s acquisition of rival Daewoo Shipbuilding & Marine Engineering (DSME) because of pending approval from foreign antitrust regulators and mounting opposition from DSME’s labor union.

Unfazed by such challenges, the state-run bank, also the largest shareholder of DSME, said it plans to push ahead with the deal as scheduled, while aiming to receive all necessary approvals by the end of this year.

On the sidelines of a National Assembly audit of the state-run bank, KDB Chairman Lee Dong-gull apologized for the three-year delay in the acquisition. “We apologize for the delays in receiving approval for the acquisition,” Lee told lawmakers.

When asked about the possibility of alternative options should the EU fail to authorize the deal, the KDB chief said there are several factors that make it difficult for DSME to recover on its own despite an increase in sales in recent months, stressing the state-run bank’s intention to push ahead with the planned acquisition.

“When reviewing diverse alternatives, it is important to look into the possible self-sustainability of DSME. There has been a temporary rise in procurements, but the shipbuilder still shows large deficits and vulnerable aspects in terms of basic competitiveness. So when conducting a review, we need to consider both the company’s competitiveness and the industrial structure,” Lee said.

HHI still needs to gain the approval of the EU, Japan and South Korea. The EU holds the key to the deal, but is also concerned that its approval may help the combined HHI-Daewoo obtain huge bargaining power in terms of its share of the lucrative liquefied natural gas (LNG) vessel market.

KDB is teaming up with HHI and the country’s antitrust agency to pressure the EU to give even a “conditional approval” by the end of this year as continued LNG price growth and boom in the shipping industry increases concerns over monopolization. Also behind the concerted effort is the bank’s optimism over the general outlook for the global shipbuilding and shipping industries over the next few years. Also, the KDB chief is said to be inclined to resolve the issue before President Moon Jae-in’s term ends next March.

The KDB chairman openly showed his uneasiness over the Korea Fair Trade Commission’s (KFTC) muted stance on the issue, pressuring the regulator to take a more active stance. But the KFTC’s active intervention could spark concerns over the preferential treatment of Korean companies.

The continued delay in the EU’s decision has worsened the situation for KDB and HHI as DSME’s profitability continues to slump. DSME’s first-half sales dropped 44.7 percent year-on-year to 2.17 trillion.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Could Starfield surprise us twice over?

Bethesda’s space RPG Starfield is still a full year away, but a new teaser trailer has offered a key insight into the way the game might be structured. Game Director ... Read more »

This Italian-made e-bike could keep rolling for up to 200km

Italian company Noko has unveiled a trio of new e-bikes that it claims can keep running for up to 200km (or 124 miles). That’s not the greatest range of any ... Read more »

iPhone SE 3 rumored to launch before the end of March 2022

When is the iPhone SE 3 going to see the light of day? A new industry analyst report suggests it will be sometime during Q1 2022 – so January, February ... Read more »

The US government is trying to save Christmas from PS5 and RTX 3080 scalpers

A group of Democratic lawmakers introduced the Stopping Grinch Bots Act on Monday November 29 to try and prevent bots from buying up scarce, in-demand products like PlayStation 5 consoles ... Read more »

Why Britain needs to catch up on the new frontier of espionage

Just a few months ago, a group of hackers did something small, almost innocuous. They bought a stolen digital identity, known as a cookie, for £7.50. But that, by their ... Read more »

Still paying for antivirus software? Experts say you probably don't need it

Viruses are no longer the biggest threats for most users, particularly now that software updates itself automatically and so much personal computing happens over the internet. Read more »

EU to allow member states to detain migrants for 16 weeks in major weakening of asylum rights

Migrants are seen by the Bruzgi Transport and Logistics Centre, some 1.5 km northeast of Kuznica Bialostocka-Bruzgi border crossing on the Belarusian-Polish border. – Getty Images Brussels is set to ... Read more »

Zoom is bringing attendance status, chat flexibility and these new features

Ahead of the holiday season, video conferencing tool Zoom has updated its platform with a host of new features. These include enhanced slide control, ability to control polls, attendance status, ... Read more »

Razer's next gaming laptops will be pricier thanks to chip shortage

Razer has announced that its next-gen gaming laptops coming out in 2022 will be more expensive than current models. The bad news was delivered by the CEO of Razer, Min-Liang ... Read more »

OECD ups 2022 growth outlook for S. Korean economy to 3%

The logo of the Organization for Economic Cooperation and Development (OECD) is seen in this October file photo. AFP-Yonhap The Organization for Economic Cooperation and Development (OECD) on Wednesday revised ... Read more »

Oppo's upcoming flagship smartphone to be powered by Snapdragon 8 Gen 1 chipset

NEW DELHI: Qualcomm finally unveiled its next-generation flagship chipset — Snapdragon 8 Gen 1. As promised the company has changed the naming scheme for the Snapdragon chipsets with the launch ... Read more »

Best text-to-speech software of 2021

The best text-to-speech apps make it simple and easy to reading documents aloud, on either your desktop, tablet, or phone. The best text-to-speech software Click the links below to go ... Read more »

Latest Oculus Quest 2 update lets you film yourself in VR – if you own an iPhone

The latest Oculus Quest 2 update brings mixed reality casting to the VR headset, effectively allowing you to film yourself in a virtual reality space. So far just six of ... Read more »

Apple AirPods prototype with transparent design surfaces on Twitter

Apple AirPods prototype with transparent design have surfaced on Twitter this week. The images of the prototype earbuds from Cupertino based tech giant has been shared by Giulio Zompetti who ... Read more »

Microsoft surface go 3 review: A light, portable and effective tablet

It has the same design, upgraded processor and software but a downgraded price – it’s £30 less than the surface go 2 (iStock/The Independent) Microsoft, of course, makes Windows, the ... Read more »

Which upcoming phones will use the Qualcomm Snapdragon 8 Gen 1?

The new Qualcomm Snapdragon 8 Gen 1 is official, and it’s set to power some of the very best smartphones of 2022. Flights and accommodation for this launch event were ... Read more »

Samsung Galaxy S21 FE leak shows off all the phone's color options

The Samsung Galaxy S21 FE has traveled a long and winding road on its journey to being launched, but it seems that it’s now very close to being officially unveiled ... Read more »

Xbox series X stock – live: Argos restock now sold out – how to get a console

LIVE – Updated at 09:25 © iStock/The Independent XBOX LB1 INDYBEST.jpg Update: The Xbox series X is now sold out at Argos. Read on for more details. The Xbox series ... Read more »

‘Call of Duty: Warzone Pacific': New Caldera map goes live for everyone next week with 15 drop zones

Photo credit: Call of Duty / YouTube screenshot Next week is going to be huge for “Call of Duty: Vanguard” and “Warzone” players as it is when the integration of ... Read more »

What will happen when Elon Musk's Gigafactory faces the wurst?

News here in Germany is that Elon Musk’s Gigafactory in Brandenburg is about to start production.  As an Ausländer myself who has lived in East Germany (Berlin and Leipzig) for ... Read more »

Omicron: Experts fear new Covid variant will impact effectiveness of key drugs for vulnerable patients

(AFP via Getty Images) Scientists fear the omicron coronavirus variant will reduce the effectiveness of key drugs that are used to treat Covid-19 in vulnerable patients. As with the vaccines, ... Read more »

F1's Lando Norris on moving to Monaco: ‘People do many things in life for money'

Lando Norris drives for McLaren (Getty Images) F1 driver Lando Norris has revealed he will move to Monaco at the end of the season, saying: “People do many things in ... Read more »

Damning video of jury vehicle incident that got MSNBC banned from covering Rittenhouse trial released by police

Kenosha police in Wisconsin have released footage of an NBC journalist who allegedly followed a vehicle transporting jury members of the Kyle Rittenhouse trial. Judge Bruce Schroeder, who presided over ... Read more »

Rookie girl group IVE eyes becoming 'First XI' in K-pop world

Members of K-pop rookie IVE pose during an online press conference Wednesday. Courtesy of Starship Entertainment By Dong Sun-hwa In the realm of football, the term “First XI” often refers ... Read more »

Steam Deck will not have exclusive games, Valve confirms

Steam Deck | Photo credit: Valve / YouTube screenshot Valve is the next video game company to release its gaming hardware, the Steam Deck. And Valve has already clarified it ... Read more »

Android Apps that stole bank credentials were downloaded 300,000 times

The apps posed as QR and PDF scanners Mobile security company ThreatFabric discovered apps on Google’s Play Store for Android that managed to deceive people into downloading them more than ... Read more »

Android TV 12 gets official release, no word on when it will come to Chromecast with Google TV

Android TV 12 has been finally released, a while after its smartphone counterpart was announced. Yet, there is no official information about its arrival on consumer devices. 9to5Google reports that ... Read more »

Xbox series X stock – live: Argos restock is available now – how to get a console

LIVE – Updated at 08:48 © iStock/The Independent XBOX LB1 INDYBEST.jpg Update: The Xbox series X is in stock at Argos. Read on for more details. The Xbox series X ... Read more »

Video: HIV stigma can be reduced with 'more people going public'

More role models are needed to help tackle the stigma of HIV, says the chair of the Elton John AIDS Foundation - people who can say "I'm living a full, happy, healthy life." Read more »

Posco mulls holding company structure: sources

  (Yonhap)South Korean steelmaker Posco Group is pushing to establish a holding company to make a breakthrough in business expansion and eventually to boost its market valuation, industry sources said ... Read more »

CRED to acquire this expense management firm

Members-only credit card management and bill payments platform CRED on Wednesday announced that it is acquiring corporate expense management company Happay.The acquisition is expected to be a cash and stock ... Read more »

UK orders Facebook to unwind 2020 Giphy deal as antitrust regulators seek to limit scale of Big Tech

Few would have predicted that short video loops of Kanye West or cats furiously typing on laptops would be the final straw for competition regulators. Yet on Tuesday, the UK ... Read more »

Honor 60 launch live blog: let's see what the ex-Huawei-brand has in store today

Refresh 2021-12-01T09:02:29.483Z And so it begins – welcome to our Honor 60 live blog, which we’ll be fawning over for the next few hours as the device launches. Read more »

Nov. vehicle sales fall 15 pct amid chip shortage

SEOUL, Dec. 1 (Yonhap) — South Korean automakers’ sales fell 15 percent last month from a year earlier as a prolonged chip shortage continued to affect vehicle production and sales, ... Read more »

CollegeDekho raises $35 million funding from QIC, Disrupt ADQ, others

CollegeDekho, an online college admissions and higher education services platform, on Wednesday said it has raised USD 35 million (about Rs 260 crore) and will use the funds to further ... Read more »

Xbox series X stock – live: Today's restock news from Smyths, Argos, Game and more

We’re expecting more restocks at major UK retailers soon (iStock/The Independent) The Xbox series X is Microsoft’s fastest-selling console, but despite its apparent success the next-generation games machine is still ... Read more »

How to Wild Rift: Defensive Itemisation

The “How to” series is aimed at players who enjoy competitive gaming and are looking to improve their experience, whether through gameplay tips or advice. The information is provided at ... Read more »

Japan stops flight bookings despite WHO Omicron travel ban warning

1/6Japan stops flight bookings despite WHO Omicron travel ban warningThe World Health Organization has warned that “blanket” travel bans risk doing more harm than good (AFP/William WEST)2/6Japan stops flight bookings ... Read more »

How to use robots to improve the customer experience at online sales events?

Online sales events are taking place this end of the year. After 2021 where electronic commerce reached values that exceeded 80,000 million dollars in retail sales, Cyber Monday and Black ... Read more »

This Innovative Payment Solution Aims To Seamlessly Integrate Fiat And Cryptocurrency Transactions

After a near-decade of skepticism surrounding the long-term viability of cryptocurrency, 2021’s record-shattering valuations of digital currencies such as Bitcoin and Ethereum reflect the rapid adoption of cryptocurrency with more ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic