A report in Korea has claimed DSME CEO Jung Sung-leep has offered to step down ahead of the yard's merger with Hyundai Heavy Industries (HHI).

The Maeil Business newspaper cited unnamed industry sources as saying the offer was made after the yard's largest shareholder Korea Development Bank signed a conditional deal to sell its controlling stake to HHI.

A formal contract is expected to be finalised next month.

DSME has been contacted for comment.

Referred to in the past as a "shipyard doctor", Jung was brought back to DSME in 2015 to oversee its restructuring, following a period at STX.

Last April, an independent committee overseeing DSME backed Jung for another three-year term as its CEO. His term ends in May 2021.