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THE INVESTOR] A state-backed ship financing firm will be founded this month with initial capital of 1 trillion won (US$845 million) to support the ailing industry, the Ministry of Oceans and Fisheries said on Jan. 6.
Under the plan, the firm will be given a total of 6.5 trillion won to help local shipping firms buy new vessels, the ministry said in its policy report to Acting President and Prime Minister Hwang Kyo-ahn.
The measures aim to support local shipping firms, as well as shipbuilders, struggling with falling new orders and mounting losses.
The state-backed firm, tentatively named Korea Shipping, is tasked with taking over container ships from ailing shipping companies and leasing them back to the shippers to help such companies stay afloat.
(
theinvestor@heraldcorp.com)