The Export-Import Bank of Korea has increased its funding for shipbuilders from KRW3.8trn to KRW5.2trn ($419.45m).
“We have increased financing for shipbuilding by KRW1.4trn to support shipbuilders and their small and medium-sized partners,” the bank said yesterday. The bank’s president Bang Moon-kyu visited Hyundai Heavy Industries in Ulsan on Tuesday and said, “We will use all our capabilities to help the shipbuilding industry overcome the crisis so that it can solidify its global market position after the Covid-19 crisis.”
Han Young-seok, CEO of Hyundai Heavy Industries, told the bank boss that an order drought is expected to continue for a considerable period of time due to Covid-19.
“We hope that the government will expand not only shipbuilding financing but ship financing so that Korean and foreign shipping companies can place shipbuilding orders on Korean shipbuilders,” Han said.
Last month, shipbuilding was included as one of seven industries the South Korean government has included in an emergency $32.4bn relief fund to try and tide local yards through the projected ordering downturn.
The state of global shipbuilding through to 2024 was the main feature in the May issue of Splash Extra, which launched yesterday. Subscription details for the monthly title are available here.