South Korean government will financially support shipbuilders that face problems due to the industry’s downturn. Namely, South Korea will extend financial guarantees for suppliers of shipbuilders and roll over their debts, Choi Jong-ku, chairman of the Financial Services Commission (FSC) informed.
As Yonhap news agency reports, under the current situation, the South Korean government made Ulsan, Geoje, Mokpo and a number of other regions, an emergency response zone to provide job support and tax incentives.
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This measure was taken because local shipbuilders are facing financial problems, which makes them to implement massive restructuring efforts, many of which include large job cuts.
This is the second designation of ‘special industrial crisis response zone’, as the government established a legal framework in June last year.
In addition, the government will also fund suppliers of shipbuilders to build more eco-friendly facilities.
