S. Korean ship exports expected to rise 26 pct this year

SEOUL, Feb. 20 (Yonhap) -- South Korean ship exports are expected to rise 26 percent in 2009 despite the worldwide economic slump and falling prices, the government said Friday.

The Ministry of Knowledge Economy said executives from Hyundai Heavy Industries
Co., Samsung Heavy Industries, Daewoo Shipbuilding and Marine Engineering Co. and
the Korea Shipbuilders' Association (KOSHIPA) expect total exports to reach $54.4
billion. In 2008, total exports reached 43.2 billion, making the country the
world's top shipbuilder.
Exports will likely continue to do well for two to three years since many leading
yards have long, backlogged orders, they said.
Local companies, meanwhile, cited difficulties related to funding in the wake of
the global liquidity crunch.
Yards called on the government to increase financial support through the Korea
Export Insurance Corp. (KEIC) and the Export-Import Bank of Korea (Korea
Eximbank).
"In particular, executives requested more funds as buyers are asking for delayed
payments since they are experiencing difficulty in getting the funds," an
official said. He added that the government will do its part to review any
suggestions made by companies to help maintain export volume and production.
Korea Eximbank has set aside 1.6 trillion won (US$1.1 billion)this year to help
yards, with Seoul hinting that more could be provided if the situation requires
it. KEIC has 1 trillion won to help cover ship exports.
Smaller companies that are feeling the pinch of the sluggish market and have no
backlogged orders called for easing loan restrictions.
Industry insiders said that smaller companies are facing the greatest pressure in
terms of funds.
"Big companies like Hyundai and Samsung are not at any risk, but some of the
smaller firms that are trying to stay afloat and will be hard-pressed to stay
open unless they receive support, especially if conditions do not improve later
in the year," a KOSHIPA official said.
yonngong@yna.co.kr
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