Korea and EU Hold Special Council for Shipbuilding Industry

Korea and the EU held a special shipbuilding industry council in the g
rand meeting room at the Ministry of Industry, Commerce and Economy on
July 18 and 19.
The meeting was the first one related to the carrying out of a mutual
agreement for shipbuilding made between Korea and the EU in Sweden on
June 22.
The EU asked for explanations before signing more shipbuilding contrac
ts because of doubts concerning the low prices of Korean shipbuilding
companies, and non-commercial loans to shipbuilders, especially Daewoo
Heavy Industries' government bailout program. The EU submitted detail
ed records pertaining to low priced contracts by Korean shipyards for
LNG vessels and container vessels.
Relating Korean banks' non-commercial financial supplements to the shi
pbuilding industry, the EU questioned in detail about the Korean Indus
trial Bank's support of unhealthy shipyards, how much government inter
fered with financial systems, and what the shipping financial suppleme
nt conditions from the Exim Bank are.=20
Korea and the EU decided to develop a positive "shipping cost analysis
model" in order to resolve doubts regarding the low pricing problems,
and to further discuss financial policies and shipping costs related
to shipbuilding, and set up a "financial association council" which wi
ll involve major banks and shipping associations.