The initial bidding process for the sale of South Korea’s mid-sized shipbuilder K Shipbuilding (formerly STX Offshore & Shipbuilding) has recently concluded, with reports indicating that U.S. private equity firm TPG has joined the bidding.
In July of this year, the KHI-UAMCO consortium, comprised of South Korean private equity firm KHI and United Asset Management Company (UAMCO), a major South Korean bank-operated non-performing asset management company, selected Samil PwC as the lead manager for the sale of K Shipbuilding, marking the official commencement of the sale process. The deadline for submitting letters of intent to bid is set for November.
The consortium plans to sell its 99.58% stake in K Shipbuilding for approximately 500 billion won (or potentially higher). The sale price is calculated based on a price-to-book ratio of 1.2 to 1.5 times, which the industry considers relatively reasonable.
South Korean media reports indicate that since initiating the sale process, at least three companies have expressed bidding interest, with the final auction expected to take place early next year. Notably, none of South Korea’s three major shipbuilders—HD Hyundai, Hanwha Ocean, or Samsung Heavy Industries—have participated in the bidding process for K Shipbuilding.
TPG, which has reportedly joined the bidding process, currently manages $286 billion in assets. The firm is said to view the South Korean shipbuilding industry as an investment target rather than seeking management control. During this bidding period, TPG has submitted a letter of intent as part of a consortium with South Korea’s Taekwang Industrial, whose business scope encompasses apparel, chemicals, real estate, and financial services.
It is understood that K Shipbuilding originated from Dongjo Shipbuilding Industry, established in 1967, and was formerly known as STX Offshore & Shipbuilding. After being acquired by the STX Group in 2001 and renamed STX Offshore & Shipbuilding, it once grew to become the world’s fourth-largest shipbuilder. However, following the 2008 financial crisis, STX Offshore & Shipbuilding suffered severe setbacks due to cash flow constraints caused by the prolonged downturn in the global shipbuilding industry, compounded by its prior excessive expansion into international operations.
In 2013, STX Offshore & Shipbuilding commenced debt restructuring; in 2016, the Seoul Central District Court announced approval of STX Offshore & Shipbuilding’s self-rescue restructuring plan; in July 2017, STX Offshore & Shipbuilding concluded its debt restructuring and resumed normal order acceptance. In 2018, creditor Korea Development Bank issued advance payment guarantees for the company, enabling it to secure new orders for two chemical/product tankers.
In 2021, STX Offshore & Shipbuilding was acquired by an investment consortium led by KHI·UAMCO for 250 billion won, securing a 95% stake and subsequently renamed K Shipbuilding. Over the following four years, K Shipbuilding’s new management successfully stabilized production rhythms and reduced costs, helping the once financially troubled shipyard return to a growth trajectory.
Notably, prior to announcing its listing for sale, K Shipbuilding had endured 14 consecutive years of losses. In 2024, it achieved operating revenue of $638 million and returned to profitability, maintaining profitability through the first half of 2025. By the third quarter of 2025, K Shipbuilding had accumulated operating revenue of 899.7 billion won and operating profit of 84.7 billion won.
Currently, K Shipbuilding has emerged as a key player among mid-sized shipyards in South Korea. As of mid-November, the shipyard has secured 15 new ship orders this year, including options, with a total value of approximately 1.2 trillion won, ensuring a steady workload for the next two years.