Korea is not considering closing shipbuilder DSME in the current order slump.
All three of the country’s big three shipyards are undergoing various degrees of restructuring after heavy losses.
But Financial Services Commission (FSC) chairman Yim Jong Yong told the Korea Economic Daily that a closure of DMSE is not on the agenda.
Referring to increased support for yards, he added: "We will try to have Korea Development Bank issue CoCo bonds [contingent convertible bonds].
“That's because it is abundantly possible under the current law, while direct investment in Korea Development Bank by the Bank of Korea requires a revision of laws in relation to the state-run bank."
In late March, former minister of strategy and finance Yoon Jeung-hyun said: "Given the serious supply glut situation, the number of large shipyards must be reduced to one or two."
The FSC has already said it will carry out a "three-track" restructuring of the country's struggling shipowners and shipyards.
The regulator will work with other stakeholders to identify and revive companies in three categories: those suffering from an industry slowdown, those showing signs of default on borrowings; and those with overcapacity.
