In the ongoing resuscitation of the nation’s ailing shipping and shipbuilding sectors, South Korea’s Ministry of Oceans and Fisheries is forming a KRW 5trn ($4.4bn) company to support a maritime turnaround in fortunes.
News of the company, to launch in June next year, comes a week ahead of the first anniversary of the collapse of Hanjin Shipping, South Korea’s erstwhile flag carrier.
The new company will provide refund guarantees for around 30 small and medium sized yards, as well as monitoring turnarounds at struggling shipping and shipbuilding companies.
“The plan is to support small and medium-sized shipbuilders facing difficulties getting a refund guarantee despite landing orders,” Kim Dong-yeon, the finance minister, said.
“Until the industry recovers, financial policy will work as a supplementary tool for the market,” Kim added.