North Korea’s missile launch hits South Korean shipbuilding industry

South Korea’s domestic shipbuilding industry has found itself part of the collateral damage of North Korea’s nuclear ambitions. Already struggling with a sluggish market, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering (DSME) have had deals for 11 ULCVs postponed by MSC because of fears over what could happen next in the north. Business Korea reports that MSC stepped back from the deal this week citing concerns over the refund guarantee issued by the shipbuilders and guaranteed by the South Korean government. If true, Samsung has just seen a deal worth a reported $1.5bn possibly go up in flames.