Shipping Firms Given Lifeline Worth 8.7 Trillion Won

A total of 8.7 trillion won will be injected to aid the nation’s deteriorating shipping industry.

Around 100 vessels owned by the industry will be purchased beginning June of this year with a 4 trillion won fund which is to be established with the help of state-run organizations, financial institutions and private investors. The Export-Import Bank of Korea (Korea Exim Bank) also plans to provide 4.7 trillion won for ships currently under construction.

Such a decision was made with aims to reinforce competitiveness and restructure the nation’s shipping industry during an emergency economic meeting presided by President Lee on April 23 in the Blue House.

The domestic shipping industry has a long overdue credit loan worth 20.4 trillion won from the financial industry with 17 trillion won from banks. Worse yet, the industry had to undergo restructuring processes due to snowballing insolvencies amid the aftermath of financial crisis triggered last September.

Meanwhile, major creditor banks will be completing the evaluation process of 38 mid-and large-scale shipping industries as early as April 24 with plans to wrap up evaluations for 140 mid-and small-sized shipping companies by the end of June to finalize the list of companies subject to undergo restructuring processes.

 

Source: Maeil Business