Bangemann confronts Koreans

The EU’s industrial affairs commissioner, Martin Bangemann, has told the Korean Government that the EU will not allow its shipyards to be killed by unfair competition. He contrasted the contraction of capacity in European yards with the Korean increases and said their industry was surviving by low pricing.

The Koreans discussed their efforts to reform the financial system and to dismantle the chybols but said that the government was not responsible for the final use of IMF money by private banks. Commented Mr Bangemann: “If EU taxpayer’s money is used — be it only indirectly — to finance bankrupt shipyards, something is wrong with the system and has to be corrected.”

He also said that the bankrupt shipyards Halla and Daedong would be a test case for Korea’s international obligations.

EU industry ministers will have an informal meeting in early July where Mr Bangemann’s visit will be discussed and in November EU future shipbuilding policy will be on the agenda.