South Korea doubles aid package to yards

Under the latest arrangement, Won9.5trn is to be made directly available to shipyards and their suppliers as either loans or bank guarantees on newbuilding contracts.
The amount is double the Won4.7trn the government originally pledged earlier in April.
The Korea Export-Import Bank and the Korea Export Insurance Corp will be charged with distribution of the loans with Won2.1bn allotted to Kexim Bank and the balance coming from KEIC as bank guarantees.
KEIC deputy director Lee Hee-yuan told Lloyd’s List: “TheWon11.5trn fund for loans to domestic and foreign owners will be divided between our company and the Kexim Bank. We shall be taking the lion’s share of Won9.3trn and the remaining funds will be apportioned to Kexim Bank,” he said.
A source at Kexim Bank added that new funds to be made available to owners could be used to help those who were experiencing difficulties funding their existing orders as well as financing new orders.THE South Korean government is preparing to inject a total Won21trn (US$16.4bn) into the domestic and foreign shipping market this year in an attempt to shore up its ailing shipbuilding industry.
Under the latest arrangement, Won9.5trn is to be made directly available to shipyards and their suppliers as either loans or bank guarantees on newbuilding contracts.
The amount is double the Won4.7trn the government originally pledged earlier in April.
The Korea Export-Import Bank and the Korea Export Insurance Corp will be charged with distribution of the loans with Won2.1bn allotted to Kexim Bank and the balance coming from KEIC as bank guarantees.
KEIC deputy director Lee Hee-yuan told Lloyd’s List: “TheWon11.5trn fund for loans to domestic and foreign owners will be divided between our company and the Kexim Bank. We shall be taking the lion’s share of Won9.3trn and the remaining funds will be apportioned to Kexim Bank,” he said.
A source at Kexim Bank added that new funds to be made available to owners could be used to help those who were experiencing difficulties funding their existing orders as well as financing new orders.