University professor Lee Byung-mo is being brought in by creditors to run restructuring Hanjin Heavy Industries & Construction (HHIC).
The former STX Offshore & Shipbuilding president and DSME vice president will replace HHIC chairman Cho Nam-ho, Maeil Business reported, citing industry sources.
Hanjin said last week that Cho and parent group Hanjin Heavy Industries & Construction Holdings (HHICH) will lose control of the shipbuilding business in a capital reduction.
The company is retiring 86.3% of outstanding shares, including the entire 30.98% holding of HHICH and Cho's 0.5%.
The remaining stock will be reduced on a 5:1 ratio, cutting equity to KRW 72.7bn ($65m) from KRW 530.3m.
Prospective managing director Lee is currently working at Inha University. He was head of STX in 2015 and a VP at DSME in 2011.
Creditors led by state-run Korea Development Bank (KDB) also plan a debt-to-equity swap worth KRW 687bn.
Of this, KRW 160bn is heading to HHIC-Phil, the Philippines shipyard unit that filed for court rehabilitation in January after defaulting on debt.
The Korean parent company's stock was then suspended due to capital erosion.
Earlier this month it agreed a debt restructuring deal for HHIC-Phil, which involves swapping Philippines lenders' debt for equity.
The yard group was at that point in talks with its South Korean lenders on a similar scheme.
