Samsung Heavy gets breather on short-term loans

[THE INVESTOR] KB Kookmin Bank on Sept. 6 extended the maturity on Samsung Heavy Industries’ short-term loans by six months.

Earlier this year, the bank had shortened the term to three months, citing the shipbuilding industry’s ongoing difficulties as a risk factor.

According to reports, the bank extended the deadline on a 100 billion won (US$ 90.49 million) loan that would have matured on Sept. 7 by six months. 

The decision is said to have been prompted by Samsung Heavy showing signs of improvements. In addition, the shipbuilder’s decision to issue new stocks to raise capital is also thought to have contributed to KB’s extension.
In addition to KB, Shinhan Bank is also reported to be considering extending the term on a 150 billion won loan given to the shipbuilder this week.

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