News
South Korean is set to create a state-funded firm tentatively name ''Korea Shipping Company'' worth KRW1 trillion (US$850 million) in a bid to support the nation's deficit-ridden shipping companies and shipyards suffering from a sharp decline in new orders.
Under the plan, the state-run entity functions as a bank, acquiring vessels owned by shipping companies, which have a weaker financial structure, at market prices and then charter them back.
By the same token, the government also mulls over a 1.9 trillion ($1.62billion) won fund to encourage the Korean shipyards to win new shipbuilding orders.
