Seoul: backing domestic shipbuilding (file image/pixabay)
Korean shipping companies considering gas-fuelled newbuildings could get financial help from the South Korean government.
The government has plans to encourage domestic shipowners to order more liquified natural gas (LNG) fuelled ships with a $1.9 billion fund, according to maritime news provider Lloyd's List.
The policy initiative surfaced in a visit by South Korean president Moon Jae-in at the Daewoo Shipbuilding & Marine Engineering's shipyard in Geoje yesterday.
"As environmental regulations become more stringent, demands for LNG carriers or LNG-fueled vessels are expected to increase. The government will try its best to make sure that domestic shipbuilders can win more orders for such vessels," the president was quoted as saying.
The shipfinancing programme would incorporate subsidies for replacing older vessels, according to the report.