Bids for DSME may be rejected

A South Korean state agency that is jointly selling 51% of Daewoo Shipbuilding & Marine Engineering (DSME) might reject bids from companies that did not support national interests. Korea Asset Management (KAM), which liquidates distressed assets at financial companies, plans to sell its stake in Daewoo Shipbuilding, which it owns with Korea Development Bank, next year.

KAM will take a comprehensive approach in setting sale terms, such as considering buyers’ qualifications and the impact on the country’s economic and industrial competitiveness. South Korea is facing increased competition from China and fears it may lose its top ranking in shipbuilding should DSME be sold to foreign interests.