Korea Development Bank unveils reform measures to deal with

The bank announced that it will set up a KDB Innovation Committee to carry out six major reform measures from the fourth quarter this year, Yonhap news reported.

KDB is the main creditor bank of financially-troubled shipyards like Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine Engineering (DSME), Hanjin Heavy Industries & Construction (HHIC), and STX Offshore & Shipbuilding. It is also the main creditor of shipowners Hanjin Shipping and Hyundai Merchant Marine (HMM).

Part of KDB’s planned reform measures include reducing the ratio of loans that are focused on the shipbuilding and shipping sectors as part of its risk management efforts.

The bank is also planning to sell its stakes in 132 non-financial companies by 2018 to raise around KRW2trn ($1.7bn), it was reported.

Apart from KDB, other Korean banks such as KEB Hana Bank, Woori Bank and Korea Export-Import Bank (Kexim) are also exposed to the country’s ailing shipbuilding and shipping sectors.

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Korea Development Bank unveils reform measures to deal with shipbuilding debt exposure