Solution urgently needed for vessel and trade stabilization

The five-day long World Trade Organization (WTO) ministerial conference in Doha, Qatar, ratified the entrance of China and Taiwan into the WTO on November 11. Given the new situation, developing and developed countries are calculating their gains and losses.

Especially, considering the special situation with China and Taiwan, the Korean government and industries are analyzing the effect on the Korean economy.

The entrance of China to the WTO is drawing both praise and worries though. Experts pointed out that by entering the WTO, China intends to firmly settle itself as an economic giant and adjust to the new global economy. Though lowering tariff barriers will boost exports to China, the low-priced product and open-door policies of the Chinese shipping industry could strike a serious blow to the Korean shipping industry, said one expert. He continued to say that the government, organizations, and industry experts should band together to offer the Korean shipping industry new ways to compete... and survive.

The Korean shipping industry is facing serious troubles nowadays, even when disregarding the bankruptcy of Choyang Line and Changyoung Line. One of the leading shipping companies in Korea is rumored to be experiencing a financial crisis because of vessel price drops.

A working level official in the industry bitterly explained that globalization and openness are being interpreted as shipping companies having to find their own ways to survive.

Chinese shipping companies under local governments are now seeking to exploit Korea/China trades. Though Korea shipping companies may try to joint venture with them, it may very well prove to be to the detriment of Korean shipping companies, said the expert.