South Korea unveils financial boost for small shipbuilders

South Korea unveils financial boost for small shipbuilders
w

South Korea has prepared another financial boost for its shipbuilding industry with an aim to help small and mid-sized shipbuilders.

According to an announcement released by the government, South Korea plans to create new opportunities for these shipbuilders, worth around KRW1 trillion (USD885.3 million), through the promotion of environmentally friendly ships.

The move could see a total of 140 liquefied natural gas (LNG) powered vessels ordered at the yards by 2025, including two next year, Yonhap News Agency reported. The government’s plan also includes an investment of KRW2.8 trillion (USD2.47 billion) in infrastructure by 2025, including areas which would support LNG bunkering operations.

READ ALSO  Italian court delays trial of Malabu oil deal suspect

Additionally, the government would provide the financially troubled shipbuilders with KRW700 billion (USD619.7 million) in new financing and roll over maturing loans and debt guarantees worth KRW 1 trillion by one year.

The measures also include the extension of the period of special state support for employment in the shipbuilding industry by six months to June next year.  

Copyright 2018 Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.