The Korean government will order 140 liquefied natural gas ships, worth 1 trillion won ($880 million), from the nation’s small and midsized shipbuilders by 2025, and provide 1.7 trillion won in financial assistance, officials quoted by Korea’s press agency Yonhap said Friday.
“In order to set small and midsized shipbuilders apart from their rivals from China and Japan, it is necessary for them to be first movers in the eco-friendly shipbuilding market,” said Yoon Sung-hyuck, chief of the Ministry of Trade, Industry and Energy’s shipbuilding and offshore plant industry division.
Overall, South Korea plans to invest around $ 2.5 billion by 2025 in building up the LNG sector. This includes approximately $ 620 million in financing and loan guarantees worth $ 880 million annually.
The three major shipbuilding companies in the country – Hyundai, Samsung and DSME – had previously been rehabilitated with government support and had recently reported significantly more orders. This time, small and medium sized shipyards should benefit the most from the government’s help.