The South Korean government will establish a fund worth up to four trillion won (US$3 billion) to purchase vessels from local shipping companies as they struggle with declining demand amid a protracted economic slump, officials said Tuesday.
According to the Ministry of Land, Transport and Maritime Affairs and the Financial Services Commission, the government will approve the creation of the fund and other measures during a meeting on Thursday to enhance the competitiveness of the nation's shipping industry.
The fund will be used mostly to purchase ships from struggling local shipping lines which have few options but to sell those assets at excessively cheap prices to foreign investors in the face of a global economic slowdown.
According to the Ministry of Land, Transport and Maritime Affairs and the Financial Services Commission, the government will approve the creation of the fund and other measures during a meeting on Thursday to enhance the competitiveness of the nation's shipping industry.
The fund will be used mostly to purchase ships from struggling local shipping lines which have few options but to sell those assets at excessively cheap prices to foreign investors in the face of a global economic slowdown.
