S. Korea: Eximbank expands financial aid for virus-hit shipbuilders

The Export-Import Bank of Korea (Eximbank) has decided to expand financial aid for virus-hit shipbuilders here, in a bid to help them overcome falling sales due to the global spread of the coronavirus pandemic.

Initially, the state-run lender planned to provide a fund worth 3.8 trillion won ($3.84 billion) for the sagging shipbuilding industry here.

But with the COVID-19 shock expanding across the globe and bringing bigger-than-expected losses to their global sales, Eximbank decided to expand the fund to 5.2 trillion won, the lender said Wednesday.

“We expanded the size of the fund for local shipbuilders to overcome the virus-sparked crisis and tighten their global leadership in the industry,” Eximbank CEO Bang Moon-kyu said after holding a conference with leaders of major shipbuilders here.

To listen to the voice from the industry, Bang on Tuesday visited the nation’s shipbuilding industry cluster of Ulsan, the southeastern port city where major shipyards are located.

The Eximbank chief held the conference with leaders from 10 major shipbuilders and their partner companies with a view to coming up with ideal support measures for the industry.

Hyundai Heavy Industries CEO Han Young-seuk asked for the state-run lender to expand ship finance for local players to secure more capital amid the pandemic shock.

“Chances are that the ongoing slump in receiving ship orders will last for a considerable period of time due to the COVID-19 shock,” Han told Bang during the conference.

“Most players are expected to face difficulties in securing capital for corporate management, so we expect the lender to expand financial aid and help shipbuilders tackle the crisis.”
Source: Korea Times