Home Sector Shipyards Sungdong Shipbuilding officially placed under court receivership April 23rd, 2018 Jason Jiang Asia, Shipyards

South Korea’s Changwon District Court has officially put financially trouble shipyard Sungdong Shipbuilding under receivership on Friday.

According to the court, auditor Deloitte Anjin will carry out due diligence on to determine the company’s value of liquidation and its going concern value.

The court decision follows Seoul ruling in March that Sungdong Shipbuilding will file for court receivership and chang its business to focus on ship repair and possibly block building.

Sungdong, which was founded in 2003 and had grown to be a reputable mid-sized shipyard in South Korea, started having financial difficulties in 2010 after the global financial crisis. After surviving on government subsidies for 8 years, the government finally decided to have the bankruptcy court take over the shipyard.

Another major South Korean shipbuilding STX got its self-rescue plan accepted by creditors, which withdrew a plan to place the shipyard under court receivership. </s> Media playback is unsupported on your device Media caption The government has bowed to pressure to raise the 6,825 tonne vessel (there is no sound on this video)

A ferry has been raised from the sea bed, three years after it sank in one of South Korea's deadliest disasters.

The Sewol sank off the south-western island of Jindo on 16 April 2014 killing 304 people, almost all school children on a trip.

It has been winched to the surface so a platform can be inserted under it for it to be towed ashore.

It is expected to arrive at port in less than two weeks, where it will be met by the families of victims.

Image copyright Hankook Daily via Getty Images Image caption Raising the vessel was one of the key demands of the families of the victims

Image copyright Getty Images Image caption The complex operation is one of the largest ever attempted

The bodies of nine victims are believed to still be trapped inside the sunken ship, and raising it was one of the central demands of their families.

The government bowed to pressure to raise the 6,825 tonne vessel, one of the most complex operations ever attempted, said the the BBC's Stephen Evans on Jindo Island.

Image copyright Reuters Image caption Relatives of the victims watched the salvage operation off the Jindo island

The 16-year-old daughter of Huh Hong-Hwan was one victim whose remains were never found.

"To see the Sewol again, I can't describe how I'm feeling right now," Mr Huh told the AFP news agency as he watched the raising of the ship from a boat nearby.

Image copyright EPA Image caption Hundreds of workers in a Chinese salvage team were involved in the raising

The sinking was blamed on a combination of illegal redesigns, cargo overloading, the inexperience of the crew member steering the vessel, and lax government regulations. The ship's captain was later convicted of murder.

Image copyright Reuters/Korea Coast Guard Image caption Former President Park Geun-hye came under intense pressure over the sinking at the time

Anger over the response of the authorities after the disaster contributed to the unpopularity of former President Park Geun-hye, who was recently ousted. </s> BELFAST'S historic Harland and Wolff shipyard is being placed into administration today as 130 employees are given redundancy notices.

The shipyard, which is where the Titanic was built between 1909 and 1911, has been struggling in recent years due to stiff competition from abroad.

It is understood that the iconic firm, which once employed 30,000 people will file for insolvency tomorrow at the High Court in Belfast.

The company’s Norwegian owner, Dolphin Drilling, filed for bankruptcy in June and put the Belfast shipyard up for sale.

The company’s yellow cranes – named Samson and Goliath – dominate Belfast’s skyline but the workforce at the yard has declined from a peak of more than 35,000 in the 1920s to only 130 - as Northern Ireland’s shipbuilding industry has all but disappeared.

The yard, which now focuses on repair work on ships and oil rigs as well as wind turbines, made a loss of £5.8m (€6.3m) in 2016 – the last year for which it filed accounts – compared with a profit of £1.1m (€1.2) in 2015.

A spokesman for Harland and Wolff who confirmed the news today said: “There has been a series of board meetings, the result of which is that administrators will be appointed over the course of the day.”

It is understood that trade unions representing the firm's employees met with administrators today arguing that it is cheaper for the government to keep the shipyard open.

An employee who has been with Harland and Wolff for the last 37 years said the company is a crucial part of the city's history.

Robert Walker said: "I’ve worked for this company for 37 years now and it’s absolutely in my blood. It’s in my blood; it’s in Belfast’s DNA. This city was built around this company. It would be a terrible shame for us to lose it." </s> An extensive South Korean salvage operation Thursday successfully raised the Sewol ferry, which capsized nearly three years ago, killing more than 300 passengers, many of them high school students.

“At 4:47am we lifted (the Sewol) 22 meters and entire body of the ferry started to show for the first time above the surface,” said Lee Cheol-jo, an official in charge of salvage operation with the Ministry of Oceans and Fisheries.

The sinking of the Sewol, with 476 passengers on board, during a routine journey from Incheon to the holiday resort of Jeju Island, April 16, 2014, triggered national outrage over the deadly accident that was later determined to be caused in part by greed, incompetence and negligence.

The ferry on that day was dangerously overloaded, hauling 3,608 tons of cargo despite a maximum cargo limit of 987 tons. It’s excessive weight made the vessel less stable, and it capsized while attempting to execute a turn at a high speed.

Many of the 250 teenagers, who died while on a school trip, were instructed by crewmembers to remain in their cabin, even as the crew abandoned ship. The ship’s captain Lee Joon-seok, who also abandoned ship, was later convicted of gross negligence and sentenced to life in prison, while 14 other crew members were sentenced to up to 12 years in prison for abandonment and violating maritime law.

The South Korean coast guard’s slow and indecisive rescue efforts also came under criticism. Officers later claimed they lacked the proper training and equipment to mount such a large-scale rescue effort at sea.

And public confidence in the government of then-President Park Geun-hye plummeted, and never recovered, over her perceived ineffective management of the crisis, and her own mysterious disappearance when she made no public statement or appearance for seven hours while the ferry was sinking.

The South Korean National Assembly cited Park’s negligence in handling the Sewol disaster, along with her alleged connection to a multimillion-dollar bribery scandal, when it voted to impeach the president in December. The Constitutional Court recently upheld the impeachment motion and a new presidential election is scheduled for May 9.

Families of the Sewol victims have been calling for the ship to be raised and for a more thorough investigation into the disaster.

The Sewol sunk in the Yellow Sea near the southeastern Island of Jindo. The salvage efforts to recover the 6,800 ton ferry had been delayed in part because of rough conditions at sea and complicated by requirements set to bring up the vessel intact, so as to aid the investigation into the cause of the accident, and to preserve any bodies that may still be on board. Nine victims are still unaccounted for.

A Chinese salvage company fitted 33 beams beneath the hull and used 66 hydraulic jacks to raise the hull of the ship, which was lying on its left side at a depth of 40 meters below the sea.

The recovered vessel will soon be moved to the nearby port of Mokpo on the mainland.

“We are calculating that it will take about 12 to 13 days to move the ferry to dry dock of Mokpo port,” said Lee with the Ministry of Oceans and Fisheries.

, the head of a group representing the families of the Sewol victims, released a statement Thursday urging the government to “work on recovery of the missing victims first.”

The group also wants more government transparency and participation by opposition parties and victim’s families in the investigation process.

Lee Kum-hee, whose daughter is one of the nine victims unaccounted for, was on hand to witness the recovery. Moved to tears by the sight of the ferry being raised, she said, “it’s heart breaking, how cold she’s been there.” </s> The Belfast shipyard famous for building the Titanic is set to go into administration later.

Harland and Wolff, one of Northern Ireland’s most historic brands, is facing closure after its trouble-hit Norwegian parent company Dolphin Drilling failed to find a buyer.

Workers have occupied the site since last Monday as part of a high-profile campaign to save the yard, which is due to formally cease trading at 5.15pm on Monday.

The shipbuilder, whose famous yellow cranes Samson and Goliath dominate the Belfast skyline, employed more than 30,000 people during Belfast’s industrial heyday, but now the workforce only numbers around 125.

It has diversified away from shipbuilding in the last two decades and until recently had primarily worked on wind energy and marine engineering projects.

Famed for building the doomed White Star liner Titanic, which sank on its maiden transatlantic voyage in 1912 after striking an iceberg, Harland and Wolff was one of the UK’s key industrial producers during the Second World War, supplying almost 150 warships.

Workers have called on the Government to step in to rescue the operation, potentially through nationalisation.

But the Government has declined to intervene, insisting the issue is a commercial one.

Officials insist that EU State Aid rules limit the scope to offer financial support through public funds.

Speculation around potential eleventh-hour bidders has so far proved unfounded, with no-one tabling an offer to stave off administration.

Workers are due to meet this afternoon when they will decide whether to continue the occupation and prevent administrators accessing the site.

They will also meet DUP leader Arlene Foster at Stormont to discuss the situation.

Barry Reid, shop steward with the GMB union and a Harland and Wolff steel worker, questioned the contention that EU state aid rules prevented Government intervention.

“It’s a waiting game today, we are waiting to hear news,” he said.

“The Government keeps quoting European law – that’s all we get out of them, European law. It’s very strange when on October 31 we are out of Europe, so why are they hiding behind European law when they don’t want to believe in European law?” </s> SEOUL, Korea, Republic Of – South Korea’s government said Saturday that a cargo ship being used by a South Korean shipping company has gone missing in seas near Uruguay with 24 crew members.

The ship went out of contact late Friday, South Korea time, shortly after one of the crew members sent a text message to the shipping company saying the ship was taking on water, according to an official from Seoul’s Foreign Ministry.

READ MORE: Philippines searches for 18 crewmen of ship sunk by typhoon

The official said the Uruguayan maritime police and a commercial vessel that had been in neighbouring waters were searching for the Stella Daisy, which had departed from a port in Brazil on March 26.

The official, who spoke on condition of anonymity, citing office rules, said 16 Filipinos and eight South Koreans were on the ship. He said it wasn’t clear whether the ship sank or if the crew members escaped.

He said the ship was registered in the Marshall Islands. </s> A court in Seoul is set to decide whether the billionaire heir-apparent of the Samsung conglomerate will be jailed for corruption.

Lee Jae-yong is facing accusations of bribery linked to a scandal that triggered the impeachment of South Korea’s former president.

Prosecutors are asking for a 12-year jail sentence. He denies all charges.

The case has gripped the public amid growing anger against South Korea’s biggest companies, known as chaebols.

Why is he on trial?

Mr Lee, also known as Jay Y Lee, has been detained since February on a string of corruption charges including bribery, embezzlement and hiding assets overseas.

He stands accused of giving donations worth 41bn won ($36m; £29m) to non-profit foundations operated by Choi Soon-sil, a friend of South Korea’s former President Park Geun-hye, in return for political favours.

The 49-year-old had been standing in as chairman for his ill father, Lee Kun-hee, who suffered a heart attack and slipped into a coma in 2014.

Prosecutors alleged that the donations were made to Ms Park’s confidante to win government support for a big restructuring of Samsung that would strengthen Mr Lee’s control over Samsung Electronics.

But the defence said he was not involved in making day-to-day business decisions at South Korea’s biggest conglomerate and that the payments were signed off without his knowledge.

The charges carry a maximum sentence of 20 years in prison, but he would almost certainly appeal against any conviction.

Yet he may yet escape a jail term even if he is convicted. Many top executives of South Korea’s biggest companies, including his father, have been convicted of crimes but were pardoned.

Who else is involved?

Mr Lee is the most high-profile figure arrested in the investigation and was charged along with four other Samsung executives.

They include former Samsung Group vice-chairman Choi Gee-sung, former president Chang Choong-ki, former Samsung Electronics president Park Sang-jin and executive vice-president Hwang Sung-soo.

Three of them resigned after the case emerged but have denied all the charges including bribery and hiding assets.

They stand accused of bribing Park to pave the way for the merger of two publicly owned Samsung companies, despite opposition from shareholders.

What does it mean for Samsung?

The Samsung Group, made up of 60 interlinked companies, is crucial to the South Korean economy, with sales equivalent to about a fifth of the national GDP.

The chaebol includes a shipbuilding division, construction company, pharmaceuticals and advertising arms. Other chaebols include LG, Lotte and Hyundai.

Mr Lee became a Samsung president in 2009 and in 2013, he was made vice-chairman of Samsung Electronics, which makes smartphones, televisions, cameras and hard drives.

But since Mr Lee’s father suffered a heart attack in 2014, he has been considered the de facto boss of the entire Samsung group.

Regardless of the outcome, the case is likely to damage Mr Lee’s reputation as one of the country’s most powerful business leaders.

However, since his arrest six months ago some of Samsung’s business operations seem to have continued largely unaffected.

Samsung Electronics posted a record profit of 11tn won for its most recent quarter and the firm has released its new flagship Galaxy S8 smartphone, closing the book on the disastrous recall of the exploding Galaxy Note 7. </s> Cables are strewn over the ground in front of the Samson Crane at the Harland and Wolff shipyard after workers voted to continue their occupation of the shipyard, in Belfast, Northern Ireland, Monday Aug. 5, 2019. Harland and Wolff, which is one of Northern Ireland’s most historic brands with credits including for building the RMS Titanic, is facing closure after its trouble-hit Norwegian parent company Dolphin Drilling failed to find a buyer. (Liam McBurney/PA via AP)

LONDON (AP) — Belfast-based consultancy BDO Northern Ireland Partners says it will oversee the administration of the shipyard that built the Titanic after the firm ran out of money.

Harland and Wolff appointed BDO as administrators after its Norwegian parent company, Dolphin Drilling, failed to find a buyer following its insolvency.

The Belfast shipyard was best known for constructing the doomed White Star liner that sank in 1912 after hitting an iceberg. It once boasted a workforce of 30,000, but now employs about 125, though it supported hundreds of other jobs in its supply chain.

In recent years, it has worked on wind energy and marine engineering projects.

BDO said Tuesday it is engaging immediately with employees and stakeholders “to take all necessary steps to ensure they are supported throughout the administration process.” </s> SEOUL: A South Korean court on Friday (Aug 25) found Lee Jae-yong, the billionaire head of Samsung Group, guilty of corruption charges after a six-month trial in a nationwide bribery scandal that triggered the dismissal from office of the country's president.

He was sentenced to five years' jail for his bribery charge.



Lee, the 49-year-old heir to one of the world's biggest corporate empires, has been held since February on charges that he bribed then president Park Geun-hye to help secure control of a conglomerate that owns Samsung Electronics, the world's leading smartphone and chip maker, and has interests ranging from drugs and home appliances to insurance and hotels.



Prosecutors originally demanded a 12-year jail sentence for Lee, who also faces charges of embezzlement and perjury - potentially the longest prison term given to a South Korean business leader.



The third-generation de facto head of the powerful Samsung Group, Lee has effectively directed operations since his father, Lee Kun-hee, was incapacitated by a heart attack in 2014.



Some investors worry that a conviction and long jail term could leave a leadership vacuum, with no one to make big decisions at Samsung, which has more than five dozen affiliate companies and assets of 363.2 trillion won (US$321.8 billion). Its listed companies make up about 30 per cent of the market value of South Korea's KOSPI stock index.



Whatever Friday's verdict, lawyers expect an appeal which could go all the way to the Supreme Court, with a final ruling probably next year.



Prosecutors have said Samsung's contributions to two funds backed by Park aimed to secure government support for a merger of two of its affiliates to tighten Lee's grip on the conglomerate. Lee has denied wrongdoing, and his lawyers say the 2015 merger was done on business merits.



Lee's trial has gripped the nation, and Friday's closed courtroom verdict will be witnessed mainly by lawyers and Samsung officials, as well as some 30 members of the public who won seats through a lottery.



Outside the Seoul Central District Court on Friday, hundreds of supporters of Lee and Park, mostly elderly, waved South Korean flags and shouted "Innocent! Release!" as they were watched on by teams of police, who parked police buses to shield the entrance of the court complex.

Samsung, founded in 1938 by Lee's grandfather, is a household name in South Korea and a symbol of the country's dramatic rise from poverty following the 1950-53 Korean War.



But over the years, it has also come to epitomize the cosy ties between politicians and powerful family-controlled business groups - or chaebols - which have been implicated in a series of corruption scandals.



South Koreans, who once applauded the chaebols for catapulting the country into a global economic power, now criticise them for holding back the economy and squeezing smaller businesses.



Investors say shares in chaebol firms trade at lower prices than they would otherwise because of their opaque corporate governance - the so-called Korea discount.



"Chaebol leaders used to get the same sentencing every time, there was even a saying called the '3-5 law' - three years sentencing, five years probation," said Park Sangin, professor of economics at Seoul National University.



"If Lee receives a heavy sentence, it can be seen as the shattering of the 'too-big-to-jail' trend of the past."



Lee's father was convicted of tax evasion in 2009, and had a 3-year sentence suspended, with judges citing his contribution to economic development and "patriotism through business enterprise from job creation". He was pardoned four months after the final ruling.



South Korea's new president, Moon Jae-in, who replaced the disgraced Park after a May 9 election, has pledged to rein in the chaebols, empower minority shareholders and end the practice of pardoning corporate tycoons convicted of white-collar crime.



The ruling is expected to affect the verdict in Park's own corruption trial, expected later this year, as prosecutors argued she and Lee took part in the same act of bribery.



Prosecutors have also indicted top Samsung executives over the bribery scandal, including Choi Gee-sung, who headed the corporate strategy office, dubbed the 'control tower'. It has since been disbanded, and Choi has resigned.



Experts were divided on how Friday's ruling might go, with some lawyers expecting Lee to be found innocent on the major charges, saying much of the evidence at trial appeared circumstantial.
South Korean shipbuilding firm Sungdong collapses into receivership after surviving on government aid for eight years.