Hyundai Hit by $100mln Addl Tax Bill
By Aiswarya Lakshmi
Thursday, March 17, 2016
South Korea’s shipbuilding giant Hyundai Heavy Industries (HHI) has been hit by another hurdle as it faces KRW 120 billion (USD 100.5 million) in taxes, Yonhap news agency informed.
HHI has been notified by the country’s tax authorities of the additional tax imposition and the shipyard is considering to file for a review of the matter.
The move comes as the South Korean shipyard struggles to extricate from debt after suffering massive losses for a second consecutive year on increased costs and an industry-wide slump.
For the past two years, Hyundai Heavy has suffered a net loss of 3.6 trillion won. The shipyard is aiming to swing back to the black this year.
The nation’s big three shipyards — Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industrie — racked up a combined loss of 7.7 trillion won last year, due to increased costs from a delay in the construction of offshore facilities and order cancellations.
Hyundai Heavy Industries is the world’s largest shipbuilding company, which is headquartered in Ulsan, South Korea. It has seven business divisions: Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery, Electro & Electric Systems, Construction Equipment, and Green Energy. The company has 25,093 employees.