S. Korea's export insurer to support sales of ships

SEOUL, Sept. 28 (Yonhap) -- South Korea's state-run export insurer said Sunday that it will provide 1.39 trillion won (US$1.19 billion) worth of coverage to ensure that local shipyards will be able to sell their product amid the global financial crisis.

The Korea Export Insurance Corp. said the funds will allow Samsung Heavy
Industries Co. and STX to launch a total of six ships without worrying about
orders being retracted because of financing problems.
The recent Lehman Brothers debacle has caused many banks and investors to be more
conservative about loans, a problem that can be alleviated if the lenders are
assured payment.
"Local yards have been asking for such measures since the funds started drying
up," he added.
Samsung and STX are producing four 160,000-ton liquefied natural gas carriers
and two 13,000-ton container ships for the companies MSC, NYK and Teekay.
"The move ensures that ships made at the two shipyards will be sold without
complications," a spokesman for the insurance corporation said.
South Korea is the world's largest builder of commercial vessels with five of the
10 largest yards located in the country.
yonngong@yna.co.kr
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