Use won shipyards urged

The Bank of Korea plans to urge domestic shipbuilders to settle contracts in won and to spread hedging activities over time to curb the currency’s gains against the dollar.

???For the currency market’s stability, we need to take multilateral efforts such as encouraging shipbuilders to settle deals in won and spread sales of currency forward contracts,?? the central bank said. Korean shipbuilders typically sell dollars and buy won in the forward market to keep a stronger currency from eroding the value of vessels sold abroad when revenues are converted.

Hyundai Heavy Industries said third-quarter profit more than doubled to a record after it raised vessel prices and as Chinese trade with Europe and the United States spurred demand for ships. ???The central bank is making a good move for the market,?? said Kim Jae Eun, an economist with SK Securities in Seoul. ???Shipbuilders and other exporters need to find better ways to hedge their foreign-exchange-rate risks.??