Plans to expand Daewoo Shipbuilding after takeover

South Korea’s Hanwha Group said it plans to expand Daewoo Shipbuilding & Marine Engineering into a major global enterprise after taking over the troubled South Korean yard.

In December 2022, Hanwha Group signed an agreement to take over Daewoo Shipbuilding, ending a long search to find a buyer for the yard which began in the late 1990s following the collapse of its parent company.

"Hanwha will make efforts to promote Daewoo Shipbuilding as a major global business area that could represent South Korea and take the lead in national development," Hanwha Group chairman Mr Kim Seung-youn said in a New Year's message to employees. Under the agreement, Hanwha Aerospace and five other Hanwha group companies will acquire a 49.3% shareholding and managerial control through a 2 trillion won (US$1.58 billion) issue of new shares by the shipbuilder. Hanwha plans to finish the acquisition in the first half of 2023.

Hanwha, the seventh largest conglomerate in South Korea, has businesses ranging from chemicals, energy, and defence to retailing and financial services.