Damen Shipyards Group is said to be in talks to take over DSME's Romanian shipyard Daewoo Mangalia Heavy Industries.
The Korea Economic Daily cited industry sources as saying negotiations are in their final stages.
DSME has been looking to offload the joint venture with the Romanian government since last year as part of its financial restructuring.
One source said: "The price negotiation between Daewoo and Damen has already completed and what's left is the Romanian government's go-ahead."
