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South Korea aims to restructure shipping firms

South Korea aims to restructure shipping firms

Seoul: South Korea's financial watchdog plans to focus on restructuring ailing shippers so as to prevent their default risks from further deteriorating the economic condition, Xinhua writes.

"The watchdog plans to urge creditor banks to wrap up their credit risk assessments on ailing shippers by early May to promote the government's restructuring move," the Financial Services Commission said.

The firms subject to the first assessment will be 37 shipping companies whose debt to the local banks stands above 50bn won ($32.1m), according to the watchdog. Local shipping companies hold a total debt worth 16 trillion won ($10.27bn) owed to the local financing firms.

The government also plans to devise policy measures to subsidise the ailing shipping firms, including offering tax benefits, it added.  [05/03/09]