Korea Mulls Shipbuilding Finance Back-up Plan

South Korea is considering whether to set up state-sponsored guarantee funds for the faltering shipping industry as part of the government's efforts to help ship owners raise funds, reports Xinhua, citing a senior South Korean regulatory official

An official at the Financial Services Commission (FSC), South Korea's financial regulator, is quoted by Xinhua as stating that the government plans to order a feasibility study by research institutes on the feasibility of setting up a shipping guarantee fund, with the report due for consideration in the first half of next year.

Similar types of funds for shippers have already been established in some European countries such as Germany and Denmark, the official indicated, noting that the funds would serve as a guarantor for loans to shipping companies.

Source: Xinhua