Hanwha to regain part of W315b deposit lost in DSME deal

[THE INVESTOR] The Supreme Court on July 14 ruled that Hanwha Group(chairman Kim Seung-youn) should receive part of the 315 billion won (US$ 277 million) deposit lost during its 2009 attempt to take over Daewoo Shipbuilding and Marine Engineering.

The top court ruled that Hanwha’s loss of such a large deposit was unfair, and returned the case to the lower courts. 

“Confiscating the entire deposit of 315 billion won is excessive, even if the confiscation clause was added to ensure that the deal is completed,” the Supreme Court said in its ruling.

The court also said that the lower courts misinterpreted regulations regarding compensations.

In 2008, Hanwha Group had put down the deposit as a guarantee for its acquisition of about 96 million DSME shares held by Korea Development Bank for 6.32 trillion won. The company also signed an agreement to forfeit the deposit should it fail to see the deal through.

However, the company failed to raise funds due to the 2008 subprime crisis, and broke the contract on June 18, 2009, losing the deposit.

Hanwha then filed a suit to reclaim the deposit on grounds that the deal was made impossible by the subprime crisis, KDB’s noncooperation, and opposition from the DSME union.

By Choi He-suk (cheesuk@heraldcorp.com)