South Korea to take several measures to recover from Hanjin bankrupt

11/04/20180 CommentsLuis Gondelles
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Ministry of Oceans and Fisheries announced this week a restructuration plan in the medium term, which includes the construction of 200 ships for the next 3 years with the intention of boost the national shipping industry affected after the Hanjin bankrupt decreed last year. The construction of the 200 ships, formed by 140 bulk carriers and 60 container ships, aims to boost the shipbuilding sector and the maritime sector after the Hanjin bankrupt. It is also a measure to overcome the weakness and decline in global demand. The Ministry explained the ships to be build will be respectful of the environment by using Natural Liquid Gas and will be equipped with top technology. The containerships, according to Kim Young-choon Minister of Oceans and Fisheries, will be of 20,000 and 14,000 TEUs. “After the bankruptcy of Hanjin Shipping, sales in the maritime sector were reduced by more than 10 trillion won, and the tonnage transported has been reduced by half”, commented Young-choon. The Minister added the government has prepared a set of comprehensive measures that will seek to support the shipping and shipbuilding industries, which have been affected by a prolonged recession and fight against internal competition and environmental regulations. South Korea also decided to subsidize the cities of Gunsan and Tongyeong, whose economies depend heavily on the shipbuilding sector; the government created a special loan fund valued at 130 billion won (122 million dollars) for the companies of these two cities and extended the maturity terms for existing loans. The announced measures are planned to give a break to the three major South Korean shipyards, Daewoo Shipbuilding & Marine Engineering Co., Hyundai Heavy Industries Co. and Samsung Heavy Industries Co.; which have accumulated losses and have had to undergo self-rescue programs with a value that amounts to 10.3 billion dollars from 2016 to not emulate the Hanjin bankrupt. Wih infotmation from:

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