Beijing: South Korea is ramping up shipbuilding finance options as it looks to cement its position as the world’s top shipbuilding nation, providing further pressure on the already struggling Chinese shipbuilding sector. On Thursday the Korean government announced plans that will dramatically increase Korean ship financing.
The Financial Services Commission announced on Thursday that it will make it possible for Korea Finance Corporation and six commercial banks including Korea Development Bank, Korea Exchange Bank, Woori, Kookmin, Hana and Shinhan banks to participate in the shipbuilding financing arena.
Currently, just the Korea Exim Bank provides manufacturing financing to domestic shipbuilders.
From next month, the seven financial institutions are scheduled to provide shipbuilding financing of around KRW 4trn ($3.5bn).
Chinese yards will look at this development with horror as they have repeatedly failed to gain any form of stimulus package from Beijing this year. [17/08/12]