S.Korea doubles support for shipbuilders to $7 bln
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South Korea, the world's biggest shipbuilding nation, has doubled its planned financial support for troubled shipbuilders and related suppliers to $7 billion, citing deepening liquidity problems amid an order draught.
The global shipbuilding industry is suffering a major downturn as orders have screeched to a halt due to a collapse in world trade and shipping company's financing difficulties.
Shippers worldwide are idling their fleets, while order delays and cancellations are spreading from second-tier shipmakers to the big players.
The South Korean government said in a statement on Thursday that the Export-Import Bank of Korea and the Korea Export Insurance Corp would provide a combined 9.5 trillion won ($7.1 billion) in loans and payment guarantees for shipbuilders and suppliers.
The amount was increased from a previous plan of 4.7 trillion won. Of the total, 7 trillion won has been earmarked for supporting small and medium-sized shipbuilders and their suppliers.
Separately, South Korea also plans 11.5 trillion won in lending for shipping companies at home and abroad, to help them finance vessel orders.
South Korea is home to the world's biggest shipyards -- Hyundai Heavy Industries (009540.KS), Daewoo Shipbuilding & Marine Engineering (042660.KS), Samsung Heavy Industries (010140.KS) and STX Offshore & Shipbuilding (067250.KS).
Ship orders have largely evaporated since the second half of 2008. Even the leading South Korean shipyards have won almost no order this year, the lone exception of Samsung Heavy's January deal for a $680 million oil production unit.
The global shipbuilding industry is suffering a major downturn as orders have screeched to a halt due to a collapse in world trade and shipping company's financing difficulties.
Shippers worldwide are idling their fleets, while order delays and cancellations are spreading from second-tier shipmakers to the big players.
The South Korean government said in a statement on Thursday that the Export-Import Bank of Korea and the Korea Export Insurance Corp would provide a combined 9.5 trillion won ($7.1 billion) in loans and payment guarantees for shipbuilders and suppliers.
The amount was increased from a previous plan of 4.7 trillion won. Of the total, 7 trillion won has been earmarked for supporting small and medium-sized shipbuilders and their suppliers.
Separately, South Korea also plans 11.5 trillion won in lending for shipping companies at home and abroad, to help them finance vessel orders.
South Korea is home to the world's biggest shipyards -- Hyundai Heavy Industries (009540.KS), Daewoo Shipbuilding & Marine Engineering (042660.KS), Samsung Heavy Industries (010140.KS) and STX Offshore & Shipbuilding (067250.KS).
Ship orders have largely evaporated since the second half of 2008. Even the leading South Korean shipyards have won almost no order this year, the lone exception of Samsung Heavy's January deal for a $680 million oil production unit.