There seems to be a groundswell in the press today about SK Group moving forward with the sale of SK Shipping Co., a subsidiary of the South Korean company.
According to industry sources, SK Group is currently negotiating with private equity fund Hahn & Company regarding the sale of SK Shipping. Hahn & Company is said to be involved in reviewing a method of buying up new shares issued by SK Shipping.
This seems to have come about due to the company’s weakened financial structure due to the prolonged economic downturn. It is reported the business has been directly affected by the slump in the shipping industry and that the company’s debt ratio was 2,391 percent as of June, with over 4.4 trillion won owing in debts.
Industry insiders say that the recent crackdown by Fair Trade Commission on unfair practices in the shipping sector has prompted SK Group’s decision to sell off its shipping arm.
SK Shipping has been established for 36 years after the founding of Yukong Shipping (SK Shipping’s predecessor).