Daewoo Shipbuilding & Marine Engineering Co., one of South Korea’s three biggest shipbuilders, dropped Daewoo from its name for the first time in 45 years Tuesday after Hanwha Group recently completed the process of acquiring the shipbuilder.

Daewoo Shipbuilding held a shareholders’ meeting at its headquarters in Geoje to amend articles of incorporation to address issues, such as changing its name to Hanwha Ocean Co.

A plan to appoint new executives, including the appointment of Kwon Hyek-woong, vice chairman of Hanwha Group’s Support Division, as the first head of Hanwha Ocean, was also approved at the shareholders’ meeting. The board of Daewoo Shipbuilding decided to propose these agenda items during a meeting held on May 8.

In addition to Kwon, two former Hanwha executives, Kim Jong-seo, former chief executive officer of Hanwha TotalEnergies Petrochemical Co., and Jung In-sub, former CEO of Hanwha Energy Corp., have also been approved as internal director candidates. Hanwha Group Vice Chairman Kim Dong-gwan, the eldest son of Chairman Kim Seung-yeon, will also join as non-executive director.

Recommended external director candidates include George P. Bush, a partner at Michael Best & Friedrich LLP and nephew of former U.S. President George W. Bush; Rhee Shin-hyung, president of the Society of Naval Architects of Korea; Hyun Nak-hee, professor at Sungkyunkwan University Law School; Kim Jae-ik, former CEO of KDB Infrastructure Investment Asset Management; and Kim Bong-hwan, professor at Seoul National University Graduate School of Public Administration.

Hanwha will secure 49.3 percent stake in the shipbuilder through a 2 trillion-won ($1.49 billion) rights offering.

Daewoo Shipbuilding, which started as Okpo Shipyard of Korea Shipbuilding Corp. in 1973, changed its name after being acquired by Daewoo Group in 1978, and then used its current name since 2002 after it severed ties with the collapsed conglomerate and came under the management of Korea Development Bank. It is the first time in 45 years that the company has changed its name from Daewoo to Hanwha.

Hanwha Group failed to buy Daewoo Shipbuilding after it was selected as the preferred bidder in 2008 when the shipyard was put on sale, but it has now come to embrace the shipbuilder after 15 years of twists and turns, paving the way to grow into a comprehensive defense company that covers land, sea and air by combining the shipbuilder’s capabilities in the field of special ships, such as destroyers, patrol ships, and submarines, with its existing businesses that include space and ground defense.

Daewoo Shipbuilding posted an operating loss of 62.8 billion won in the first quarter of this year, but the company is reducing its losses. Hanwha is expected to speed up efforts to put the troubled shipbuilder back on track once the acquisition process is completed.

By Pulse

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