[THE INVESTOR] The Korea Development Bank is facing increasing heat over its part in the Daewoo Shipbuilding and Marine Engineering crisis.
Following the damning reports from the Board of Audit and Inspection, the KDB has come under fire for allowing the shipbuilder to reach critical conditions unchecked.
As more of its malpractice comes to light, the possibility of a parliamentary hearing on the state-run policy bank has surfaced.
On June 17, Rep. Kim Jong-in, the interim leader of the main opposition Minjoo Party of Korea, said that a hearing may be unavoidable.
“The public is increasingly critical of whether KDB is conducting its industrial restructuring-related duties properly,” Kim said.
“The KDB must reveal everything about past developments at the hearing, and must clarify what its role in restructuring will be.”
The shipbuilder is at a critical juncture with massive deficits while new orders are drying up. In a recent audit, the BAI found that KDB — DSME’s largest shareholder and main creditor — was responsible for gross negligence and fed the crisis.