▲ This composite file photo shows the shipyards of HD Hyundai Heavy Industries Co. (above) and HD Hyundai Mipo Dockyard Co. (PHOTO NOT FOR SALE) (Yonhap)

financial support-shipbuilding sector

Shipbuilders, banks to rev up financial support for subcontractors

SEOUL, May 13 (Yonhap) -- The country's major shipbuilders and local banks have teamed up to give more financial support for shipbuilding-related smaller firms, the industry ministry said Wednesday.

According to the ministry, Hanwha Ocean Co. and Samsung Heavy Industries Co., along with Shinhan Bank and Woori Bank, have chipped in to create a combined 42.6 billion-won (US$28.9 million) fund for trade insurance.

In January this year, HD Hyundai Heavy Industries Co. and Hana Bank already funneled a total of 28 billion won into the fund, which is used to provide insurance to shipbuilding parts manufacturers and their subcontractors.

The industry ministry said a total of 1 trillion won worth of trade insurance will be offered to shipbuilders' subcontractors.

In addition, local banks will pump a total of 15 trillion won in productive finance to smaller exporters, the ministry said.

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