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South Korean shipbuilders to get state support

Staff Writer |
South Korea plans to spend about 11 trillion won (S$13.4 billion) by 2020 to help the industry amid a dearth of new orders and prolonged losses.

The government intends to order more than 250 vessels and provide about 6.5 trillion won in financing support to strengthen the efficiency of shipping companies to the end of this decade, said Finance Minister Yoo Il Ho on Monday.

Hyundai Heavy Industries, the world's biggest shipbuilder, will spin off its non-shipbuilding businesses, while Daewoo Shipbuilding & Marine Engineering, the second biggest, plans to cut 5,500 jobs by 2018, the government said.

The local shipbuilding industry has been restructuring and has already shed about 20,000 jobs in the first half of this year, amid losses from excess capacity and sluggish global trade.

While recovery may be slow in 2018, it will not be back to the levels seen between 2011 and last year, the government said.

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