South Korean president-elect Yoon Suk-yeol, who won narrowly at the polls on 9 March, wants the country to be a born-again maritime nation.
Yoon, previously a prosecutor, is from the conservative main opposition People Power Party whose ideology is aligned with former dictator Park Chung-hee, who is credited with transforming South Korea into an export-oriented economy. That process gave rise to the chaebols, or family-run conglomerates.
After the administration of outgoing president Moon Jae-in conceptualised a five-year plan in 2017 to revive the country’s struggling maritime industries, market watchers are wondering how the new government will continue these efforts. In 2017, Hanjin Shipping, the country’s largest shipping group, collapsed under a mountain of debt and the then second-largest container shipping company, HMM, was navigating its way through a financial crisis, as was major shipbuilders Daewoo Shipbuilding & Marine Engineering and STX Offshore & Shipbuilding (now renamed K Shipbuilding).
The aforementioned five-year plan included establishing Korea Ocean Business Corporation, a state-backed ship finance institution.
Based on Yoon’s campaign messages of developing autonomous navigation, smart ports and green ships, all projects started by the Moon administration, it appears that Yoon will not revamp the maritime policy.
South Korean shipping sources told Container News that Yoon is expected to spearhead efforts to find another white knight for DSME, after the European Commission nixed the shipbuilder’s proposed acquisition by Hyundai Heavy Industries in January.
State policy lender Korea Development Bank, which has already made it clear it will eventually divest its stake in HMM, also wants to release its grip on DSME.
In February, during campaigning in Geoje, Yoon addressed residents there, saying that if he was elected, he will prioritise the search for a white knight for DSME. The shipbuilding industry is a major employer in Geoje, which is home to Samsung Heavy Industries and is near DSME’s Okpo yard. Geoje residents are therefore, concerned of any fallout resulting from a potential collapse of Samsung HI or DSME.
Yoon said, “We’ll resolve the DSME takeover issue as soon as possible so that the shipbuilder can continue to contribute to the economic development of Geoje and South Korea."
Martina Li
Asia Correspondent
