The first round of the sale bidding process for South Korea’s mid-sized shipyard K Shipbuilding (formerly STX Offshore & Shipbuilding) has recently been completed, with reports indicating that the American private equity firm TPG has joined the bidding.
In July this year, the KHI·UAMCO alliance, formed by South Korean private equity firm KHI and the Korea United Asset Management Company (UAMCO) operated by major South Korean banks, selected Samil PwC as the lead manager for the sale of K Shipbuilding, marking the official start of the shipyard’s sale process. The deadline for submitting letters of intent to bid was set for November.
The alliance plans to sell 99.58% of the shares in K Shipbuilding for approximately 500 billion won (or potentially higher). This sale price is based on a price-to-book ratio of 1.2 to 1.5, which the industry considers relatively reasonable.
South Korean media reported that since the sale process began, at least three companies have shown interest in bidding. The final bidding is expected to take place early next year. Notably, South Korea’s three major shipbuilding groups—HD Hyundai, Hanwha Ocean, and Samsung Heavy Industries—did not participate in the bidding process for K Shipbuilding.
TPG, which is rumored to have joined the bidding, currently manages $286 billion in assets. It is reported that the firm views the South Korean shipbuilding industry as an investment target rather than seeking management control. During this bidding round, TPG formed a consortium with South Korea’s Taekwang Industrial, which has already submitted a letter of intent. Taekwang Industrial’s business scope covers apparel, chemicals, real estate, and financial services, among others.
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 and renamed STX Offshore & Shipbuilding in 2001, it once developed into the world’s fourth-largest shipbuilding company. However, following the 2008 financial crisis, STX Offshore & Shipbuilding was severely impacted by a cash flow crunch due to the prolonged downturn in the global shipbuilding industry and its previous over-expansion into international business.
In 2013, STX Offshore & Shipbuilding began debt restructuring. In 2016, the Seoul Central District Court in South Korea announced the approval of STX Offshore & Shipbuilding’s self-rescue restructuring plan. In July 2017, STX Offshore & Shipbuilding completed its debt restructuring and was able to accept orders normally. In 2018, its creditor, the Korea Development Bank, issued advance payment guarantees, enabling it to secure two new orders for /product tankers.
In 2021, STX Offshore & Shipbuilding was acquired by an investment group led by the KHI·UAMCO alliance for 250 billion won, purchasing 95% of its shares, and was renamed K Shipbuilding. Over the next four years, the new management of K Shipbuilding successfully stabilized its production rhythm and reduced costs, helping the once financially troubled shipyard return to a growth trajectory.
After years of restructuring and operational normalization, K Shipbuilding is now primarily responsible for building product tankers. Consequently, the KHI·UAMCO alliance began seeking to recoup its investment while hoping to realize future growth potential by joining the Korea-US shipbuilding cooperation project MASGA.
It is noteworthy that before the sale was announced, K Shipbuilding had experienced 14 consecutive years of losses. In 2024, it achieved revenue of $638 million and returned to profitability, and it was profitable again in the first half of 2025. As of the third quarter of 2025, K Shipbuilding had accumulated revenue of 899.7 billion won and an operating profit of 84.7 billion won.
Currently, K Shipbuilding has developed into a cornerstone of South Korea’s mid-sized shipyards. As of mid-November, the shipyard has secured orders for 15 new ships this year, including optional vessels, with a total value of approximately 1.2 trillion won, ensuring workload for the next two years.
