[Yonhap News Agency / May 23, 2023] Major South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. (DSME) was rebranded as Hanwha Ocean Co. on Tuesday, opening a new era as a unit of Hanwha Group, the seventh-largest conglomerate in the country.

The embattled shipyard also appointed Kwon Hyuk-woong, president of Hanwha's support division, as its new CEO and picked its new management at an extraordinary shareholders meeting.

It marked the second time in 45 years that DSME, the world's fourth-largest shipbuilder, has undergone a name change. The previous one took place in 1978, when it was taken over by now-defunct Daewoo Group. 

The move came a month after South Korea's antitrust watchdog conditionally approved Hanwha's acquisition of DSME, removing the last hurdle for Hanwha's push to become a global leader in the defense and energy sector.  Hanwha is required to report to the Fair Trade Commission every six months for the next three years on measures it takes not to discriminate against other rivals in the pricing of equipment for military vessels. Hanwha had earlier received the green light from other foreign anti-competition authorities in six other countries and the European Union.

Following DSME's name change and selection of new management, Hanwha is poised to take part in the shipbuilder's 2 trillion-won (US$1.52 billion) rights offering to acquire a 49.3 percent stake and managerial control.

The takeover would mean the end of a long debt rescheduling program for DSME that dated back to 2001. Hanwha tried to buy DSME in 2008 for 6.32 trillion won, but it fell through due to the global financial crisis.

Hanwha has vowed to turn the shipbuilder into one of the most innovative firms by combining Hanwha's defense capabilities with its edge in design and shipbuilding.  It has also pledged efforts to integrate its global capabilities covering "space, ground and sea," at a time when global demand for Korean weapons systems is gaining traction amid geopolitical uncertainties.