Skip to content
Subscriber Only

Korea to Spend $9.6 Billion by 2020 to Support Shipbuilding

1477873564_korea shipping lede
Photographer: SeongJoon Cho/Bloomberg
Updated on

South Korea, home to the world’s three biggest shipbuilders, plans to spend about 11 trillion won ($9.6 billion) by 2020 to help the industry amid a dearth of new orders and prolonged losses.

The government intends to order more than 250 vessels and provide about 6.5 trillion won in financing support to strengthen shipping companies’ efficiency through the end of this decade, Finance Minister Yoo Il-ho said Monday. Hyundai Heavy Industries Co., the world’s biggest shipbuilder, will spin off its non-shipbuilding businesses, while Daewoo Shipbuilding & Marine Engineering Co., the second biggest, plans to cut 5,500 jobs by 2018, according to the government.