Lee Dong-geol, a friend of the departed, criticizes the conservative government’s intentions… Should have promoted the reorganization of the shipbuilding industry

“If the Lee Myung-bak and Park Geun-hye governments had reorganized the shipbuilding industry into a big two system, the EU (European Union) approval of the merger would not have been a problem.”


At a press conference held online on the 2nd by Lee Dong-geol, chairman of Korea Development Bank, he explained that the sale of Daewoo Shipbuilding & Marine Engineering was canceled due to opposition from EU anti-monopoly authorities. The responsibility for the failed sale of Daewoo Shipbuilding & Marine Engineering was shifted to the previous government.



He said, “I know there was a consensus that the shipbuilding industry should be reorganized into a big two system in 2015 and 2016. If it had been reorganized, everything would have been easier.”



Chairman Lee pointed out that the funds invested at the time prolonged Daewoo Shipbuilding & Marine Engineering and caused excessive competition in the domestic shipbuilding industry, so that only EU shipowners, their customers, had an advantage. Chairman Lee explained that the reason for the EU competition authority’s rejection of the merger between Hyundai Heavy Industries Group and Daewoo Shipbuilding & Marine Engineering was to take advantage of this situation. He emphasized that it is necessary to lower the scale of the domestic shipbuilding industry to meet global demand.

Korea Development Bank is the largest shareholder with a 55.7% stake in Daewoo Shipbuilding & Marine Engineering. In 2015, Korea Development Bank and major creditor banks such as the Export-Import Bank of Korea invested 4.2 trillion won in new funds into Daewoo Shipbuilding & Marine Engineering.



At that meeting, he spent considerable time criticizing the old and new governments. Chairman Lee did not pay a single penny in corporate tax due to restructuring losses of 5.5 trillion won in 2015 and 2016. He emphasized that a total of 7545 billion won in corporate tax was paid.



Chairman Lee said, “When I took office as chairman, Korea Development Bank, which was in crisis of capital erosion, has contributed to the government’s finances by dramatically improving its financial performance over the past five years. However, this is a wrong view that stayed in the development finance era of the 1970s and 1980s.”



He also said, “I am very concerned about the fact that the new government’s relocation of the Korea Development Bank to Busan is taking place without sufficient discussion and public debate.”



Citing Seoul Mayor Oh Se-hoon, Chairman Lee said, “The decision to relocate state-owned banks to local areas will lead to self-harmful decisions, and it is impossible for Korea to have two financial centers. There is absolutely no basis for the creation of ~3 trillion won.”



Regarding the sale of Ssangyong Motor and KDB Life, which he did not complete before his retirement, he said, “It is regrettable,” he said, “but since Ssangyong Motor has very weak intrinsic competitiveness, it is difficult to revive with only financial support. But from now on, it has to be sold on the spot,” he said.

Meanwhile, Chairman Lee is considered as a representative person in the financial world. In 2020, Lee Hae-chan, former leader of the Democratic Party of Korea, was pointed out for his political bias by toasting “Let’s go, 20 years” at the publication celebration. Chairman Lee expressed his gratitude to the Financial Services Commission, saying, “I am resigning for the right person who is in line with the new government and policy philosophy,” although he had about one year and five months left in his term.