Korea supports shipyards

The Export-Import Bank of Korea (Korea Eximbank) Chairman Chin Dong-soo said the state-run lender would come to the rescue of struggling shipbuilding companies. “I’ve recently been asked why Korea Eximbank doesn’t offer loans to the nation’s small- and medium-sized enterprises,” Chin said at a press conference held at the Bankers’ Club in Seoul, Wednesday. “Thus far, we have supported mid-sized firms for specific exports. But down the road, we plan to provide comprehensive support to others as well.”

To this end, Chin said Korea Eximbank had established a division early this month specializing in loans for small companies. In addition, the bank will put aside 8.5 trillion won for these companies in 2009, marking a substantial rise from last year’s 6.5 trillion won. In particular, Chin said the bank will focus its energy and funds on domestic shipbuilders, which have recently struggled due to the global credit crunch and subsequent financial distress.

“The shipbuilding industry is crucial for the country since we have an unrivalled competitive edge in the field. The problem is that shipyards have to shoulder increasing burdens in the midst of the financial crisis,” Chin said. “We seek to relieve them of their burden in terms of garnering funds to build vessels. But we plan for a careful screening before providing loans.”