STX Group chairman Kang Duk-soo will resign as CEO of the conglomerate’s shipbuilding unit, which has been suffering from a liquidity shortage caused by the global economic slowdown, company officials said on Monday.

The resignation plan was announced after the board of STX Shipbuilding & Marine Engineering decided to replace him with Park Dong-hyuk, a vice president at rival Daewoo shipbuilder.

Kang accepted the decision, a serious blow to the chairman who established the nation‘s fourth-largest shipbuilder 12 years ago.

A month ago, Kang also resigned as CEO of STX Pan Ocean Co., the country‘s leading bulk carrier.

Main creditors including Korea Development Bank had demanded that Kang resign from the post before they would inject fresh financial support.

Kang’s resignation will be finalized at a shareholders’ meeting slated for Sept. 27.


By Seo Jee-yeon
(jyseo@heraldcorp.com)