South Korea's financial regulator believes DSME creditors must take a hit in order for the yard to access a much-needed aid package.

Yim Jong-yong, chairman of the Financial Service Commission (FSC), told a parliamentary committee that the government has been reviewing an "additional restructuring plan" for the shipbuilder.

"The basic idea is that all stakeholders must shoulder losses," Yim said, according to the Yonhap news agency.

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