Kang Duk-soo, who built South Korea’s former STX group, is returning to the shipbuilding industry through D-Ocean Asset Management, the consortium acquiring control of SK Oceanplant for around KRW 410 billion ($298 million).
SK Oceanplant has also recently signed contracts for six 115,000 dwt aframax crude tankers, with options for two additional vessels.
The firm orders are valued at about KRW 600 billion. The total could rise to around KRW 800 billion ($580 million) if the two options are exercised.
Based in Goseong, SK Oceanplant was formerly known as Samkang M&T. SK Ecoplant acquired the company in 2022, and it was renamed the following year. Its activities include heavy steel fabrication, ship blocks, offshore structures, special-purpose vessels, and ship repair and conversion work.
Kang joined Ssangyong Cement in 1973 and later became chief financial officer of Ssangyong Heavy Industries. In 2001, he invested his own money to acquire the business and renamed it STX.
The group later expanded through a series of acquisitions. Pan Ocean joined the group, while Kang acquired Norway’s Aker Yards in 2007, creating STX Europe. He also developed STX Dalian in China as a large greenfield shipbuilding complex.
The group came under pressure after the 2008 financial crisis reduced newbuilding demand and its leveraged expansion created a severe liquidity squeeze. Restructuring began in 2013 and the group was subsequently dismantled.
Kang was arrested and detained in April 2014 and was later sentenced to six years in prison over corporate offences including embezzlement, breach of trust and accounting fraud. In October 2015, an appeals court overturned the accounting-fraud conviction and reduced his sentence to three years, suspended for four years, leading to his release.
The former STX Dalian complex has since returned to shipbuilding under new ownership. Hengli Group acquired the yard in 2022 and relaunched it as Hengli Heavy Industries, which now has orders spanning tankers, bulkers, containerships and gas carriers.
The former Rongsheng Heavy Industries site is also being revived, with Wuhu Shipyard bringing two large drydocks at Nantong back into service for newcastlemaxes and VLCCs.
Global ship contracting has accelerated, while previously inactive shipbuilding capacity in Asia is returning as established yards extend delivery slots towards the 2030s.
