Doosan Heavy to receive $652 mln in fresh loans from state lenders

[Yonhap News Photo]

SEOUL -- Doosan Heavy Industries & Construction, a key contractor in South Korea's energy industry, will receive an additional short-term fund of 800 billion won ($652 million) from state lenders, based on a self-rescue package presented by its parent group. The company has already received a series of special loans this year due to unabated financial woes.

The bailout is mainly for the early repayment of 500 billion won worth of bonds with warrants in early May. Doosan has promised to pay back its debt by cutting costs and selling non-core assets due to an uncertain business outlook caused by President Moon Jae-in's policy of phasing out power plants using fossil fuel.

Doosan Heavy has already received 1.6 trillion won from the Korea Development Bank and the Export-Import Bank of Korea, which described their policy funding as an inevitable choice to protect a key industry whose financial woes have great social and economic effects. The company has been involved in a number of power projects at home and abroad.

According to Eximbank, Doosan Heavy was saddled with 4.2 trillion won in loans due this year, including 1.25 trillion won in corporate bonds, 1.1 trillion won in state-run bank loans, 780 billion won in commercial bank loans, 360 billion won in foreign bank loans and 700 billion won in corporate bills and asset-backed short-term bonds.

Lim Chang-won cwlim34@ajunews.com

Doosan Heavy to receive $652 mln in fresh loans from state lenders

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