KDB seeks to rein in role of STX chief

Kang Duk-soo

Korea Development Bank, the main creditor of cash-strapped STX Offshore & Shipbuilding, said yesterday it has requested that STX Group Chairman Kang Duk-soo step down as chief executive of the conglomerate’s flagship company. KDB also asked Kang to give up his seat as chair of the company’s board of directors, saying a new management system is needed to help normalize the business.

“We judged that an outside expert with expertise and the will to initiate things should be recommended as new chief executive to normalize STX Offshore & Shipbuilding at an early stage,” KDB said in a statement.

In April, STX Offshore & Shipbuilding, the world’s fourth-largest shipbuilder, sought a voluntary corporate restructuring agreement with KDB, the Export-Import Bank of Korea and other creditors after STX Group failed to secure financing to repay maturing debts.

KDB said earlier that among STX Group affiliates, STX Offshore & Shipbuilding would be salvaged because of its big impact the country’s economy and employment.

KDB said creditors will meet this week to name a chief executive prior to creating a new management team after a board of directors meeting Monday and a shareholders’ meeting on Sept. 27.

Kang has said he would “not raise any objections to creditors’ decisions in regard to management reform.”

BY LEE EUN-JOO [angie@joongang.co.kr]