The planned sale of South Korea’s K Shipbuilding has failed after Taekwang Industrial was unable to agree on terms with the yard’s current investors.

K Shipbuilding, the remaining South Korean business of the former STX Offshore & Shipbuilding, has been through years of restructuring. The former STX operation traced its roots to 1967 through Dongyang Shipbuilding Industry Co. and later expanded overseas before financial pressure intensified after the 2008 financial crisis and weaker shipbuilding demand.

In 2021, KHI and United Asset Management acquired the yard and led its recovery. They addressed debt issues and resolved low-priced legacy orders. In 2025, K Shipbuilding returned to profit for the first time in 14 years.

The yard has since strengthened its orderbook. Last year, it said it had more than two years of work secured and was operating at 110% utilization. It also announced that it became the first medium-sized South Korean shipyard to obtain U.S. CMMC Certification for participation in U.S. defense procurement and U.S. Navy ship maintenance projects.

The investors had planned to sell their combined 99% stake through a process limited to Korean companies. Taekwang Industrial, a petrochemical and textile manufacturer, was the only bidder.

In a 22 June regulatory filing, Taekwang Industrial said talks could not move forward because its offer and the sellers’ requested terms remained apart. As a result, it was not selected as the preferred bidder.

The investors said they will review the process and decide whether to restart bidding depending on market conditions. KHI also owns Dahan Shipbuilding and said last year that it planned to pursue a public offering for that yard.