Doosan May Get W800 B Financial Support After Unveiling Self-Rescue Plan

Doosan Group will sell assets and reduce costs to secure 3 trillion won and improve the financial structure of its struggling Doosan Heavy Industries.

Main creditors have accepted the group's so-called self-rescue plan, the Export-Import Bank of Korea and the Korea Development Bank, who have begun reviewing additional financial support, reportedly about 800 billion won.

Doosan Heavy could not confirm the additional financial aid.

In a joint statement, the banks said they would prepare measures "to normalize Doosan Heavy's management by May as soon as the results of the ongoing due diligence are completed."

Each Doosan affiliate, including Doosan Heavy, will sell non-core assets and push for a paid-in capital increase.

Doosan Heavy, which incurred heavy losses due to Korea's nuclear-free energy policy, will also revamp its business structure.

It will now concentrate on future innovative technology projects, with gas turbine power generation projects and renewable energy projects as min pillars.

Orders worth about 10 trillion won for nuclear and coal-fired plant projects in South Korea were canceled.

Doosan Heavy has 4.2 trillion won in loans due this year. It accumulated net losses worth 2.68 trillion won from 2014 through 2019.