South Korea plots fresh $1.2bn shipping fund

New venture plans to help domestic firms struggling with downturn.

South Korea has established a new $1.2bn investment fund to aid domestic shipowners.

Korea Trade Insurance Corp and Korea Maritime Guarantee Insurance will be involved to reduce the risk in sale and purchase dealings, Yonhap reports.

Korea Development Bank (KDB) and other state-backed lenders are also in on the project, the report says.

This is not the first time that Korea has taken such a path.

Notable moves include an $8.1bn fund set up in 2002 that helped create alternative opportunities for Korean yards at a lean time for the shipbuilders.