State-owned Korea Development Bank (KDB) has announced an expected loss of KRW 3.6 trillion ($3.1bn) for 2016.
The figure is its biggest deficit for 18 years, the Maeil daily reported.
It blamed valuation losses at shipbuilder DSME, in which it holds 79%. It conducted a KRW 1.8 trillion debt to equity swap in the company last year.
KDB said total restructuring costs at yards and shipping companies like the collapsed Hanjin Shipping will reach KRW 5.6
