Daejeo Ferry completes rehabilitation process to normalize Pohang-Ulleung route

Daejeo Ferry, the operator of the ultra-high-speed vessel El Dorado Express which connects Pohang and Ulleung Island, has successfully completed its court-led rehabilitation process. The Busan Rehabilitation Court decided to terminate the proceedings on January 1, noting that the company has fulfilled its obligations regarding secured and general rehabilitation claims following the approval of its rehabilitation plan.

The company faced significant financial difficulties after launching the 3,158-ton vessel in July 2023, recording cumulative losses of approximately 10.9 billion won due to high fuel costs, seasonal passenger fluctuations, and disputes over operational deficit support from Ulleung County.

A turning point occurred through mediation by the Anti-Corruption and Civil Rights Commission, which led to an agreement where Ulleung County would pay outstanding deficits and transition to a fixed annual support system. Following a local council resolution in February, the company began fulfilling its repayment obligations, marking the first time a coastal passenger shipping company in South Korea has successfully completed such a rehabilitation process.