South Korea to create $1.2b shipping investment fund

The government of South Korea also plans to require downsizing and restructuring of its shipyard industry, according to multiple media reports.

   The South Korean government announced Wednesday it will create a $1.2 billion fund to aid its ailing shipping industry, according to a report by South Korea’s Yonhap News Agency.
   The fund, aims to “aid the shipping industry which has been struggling due to decreasing global trade,” the report said, saying it will “help shippers buy and sell vessels with less financial risk as the Korea Trade Insurance Corp. and the Korea Maritime Guarantee Insurance Co. will offer insurance for the process.”
   Yonhap said “local financial companies and state-run policy lenders including the Korea Development Bank will participate in the $1.2 billion fund” and that the government will require “local shipbuilding companies to go through harsh restructuring and downsizing through mergers and acquisitions (M&As) to overcome the current difficulties.”