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S. Korea's shipping industry recovering from global crisis

According to Yonhap News,

By Kang Yoon-seung SEOUL, Aug. 12 (Yonhap) -- South Korea's marine shipping industry has been gradually recovering from the fallout of an industry-wide crisis roughly five years ago that led to the bankruptcy of a major shipper here, the oceans ministry said Wednesday.

The size of the country's shipping industry was estimated to have reached 37 trillion won (US$31.2 billion) in 2019, growing from 29 trillion won in 2016 amid the global crisis, according to the Ministry of Oceans and Fisheries.

The figure, however, falls short of the 39 trillion won in 2015, before the country faced the full-fledged impact of the global crisis.

The ministry expected sales of the local maritime shipping industry to reach 51 trillion won in 2025, breaking out from the prolonged slump.

The country's shipping capacity is set to reach 1.2 million twenty-foot equivalent units (TEUs) by the year, more than doubling from 500,000 TEUs in 2019.

The global shipping industry has faced unprecedented challenges since 2015 due to falling freight rates stemming from an oversupply of ships and a protracted slump in the global economy.

Hanjin Shipping Co., once the world's seventh-largest shipper, went bankrupt in early 2017, dealing a fatal blow to the domestic shipping industry.

To revitalize the marine shipping segment, South Korea announced a five-year development plan in April 2018, which included plans to order about 200 vessels through 2020. The ministry said it has completed ordering 164 ships as of July.

From 2018 to 2019, South Korea has injected 4.28 trillion won to lend a hand to local shippers.

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Source: Yonhap News (Aug 12, 2020)

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