WT/DS594/1  
G/SCM/D129/1  
G/L/1354  
 
10 February 2020  
(20-0975) Page: 1/17 
  Original: English  
 
 
KOREA – MEASURES AFF ECTING TRADE IN COMM ERCIAL VESSELS   
(SECOND COMPLAINT) ( JAPAN)  
REQUEST FOR CONSULTA TIONS BY JAPAN  
The following communication, dated  31 January 2020 , from the delegation of Japan  to the delegation 
of Korea , is circulated to the Dispute Settlement Body in accordance with Article 4.4 of the DSU.  
 
_______________  
 
 
My authorities have instructed me to request consultations with the Government of the Republic of 
Korea (Korean Government), pursuant to Articles 1 and 4 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes , Articles XVI:1 and XXII:1 of the General 
Agreement on Tariffs and Trade 1994  (GATT 1994 ) and Articles 4, 7, and 30 of the Agreement on 
Subsidies and Countervailing Measures  (SCM Agreement ), with respect to certain measures affecting 
trade in commercial vessels.  
 
The Republic  of Korea (Korea) has developed and implemented a range of measures designed to 
provide financial support to its shipbuilders.  These measures include providing both "producer 
support, " such as direct financing provided to Korean shipbuilders that, inter al ia, enables their 
continued market presence and prolonged periods of otherwise unsustainable low pricing, and "sales 
support " to Korean shipbuilders and their customers, which is designed to stimulate sales for Korean 
shipbuilders, including during periods  of relatively low demand.  
 
Japan considers that certain measures taken by Korea provide subsidies that are inconsistent with 
its obligations under the SCM Agreement  and the GATT 1994 . The measures in question relate to 
the development, production, marketi ng and/or sale or purchase of commercial vessels, including 
vessels designed to carry crude oil, liquefied natural gas (LNG), liquefied petroleum gas (LPG) and 
shipping containers.  These measures include, but are not necessarily limited to, those described  
below.  
 
1. Corporate Restructuring Measures to Support Korean Shipbuilders  
Japan is concerned about the provision by Korea, whether directly and/or through public and private 
institutions owned, controlled, entrusted and/or directed by the Korean Government, of corporate 
restructuring measures on non -commercial terms to support Korean shipbuilders.  This includes, but 
is not limited to, (i) measures provided by the Korea Development Bank (KDB), including those 
provided pursuant to the Korea Developm ent Bank Act (KDB Act); (ii) measures provided by the 
Export -Import Bank of Korea (KEXIM), including those provided pursuant to the Export -Import Bank 
of Korea Act (KEXIM Act); (iii) measures provided by the Korea Trade Insurance Corporation 
(K-Sure), incl uding those provided pursuant to the Trade Insurance Act (K -Sure Act); 
(iv) comprehensive measures adopted by Korea, including those establishing the Marine Finance 
Center (MFC) to "strengthen marine and shipping finance "; and (v) measures provided by the Korea 
Ocean Business Corporation (KOBC), including those provided pursuant to the Korea Ocean Business 
Corporation Act.  
 
These measures take the form, inter alia , of (i) loans with interest at below -market rates; (ii) equity 
infusions on terms that are no t commercially reasonable, including share subscriptions and 
cancellations and debt -to-equity swaps on better -than-commercial terms; and (iii) purchases of 
convertible bonds on better -than-commercial terms, as further described below.  They include, but 
are not limited to, the following:  WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  a. All Korean measures related to the restructuring of Daewoo Shipbuilding & Marine 
Engineering Co., Ltd. (DSME)1 and related entities from 2015 onward, including, but not 
limited to, the following:  
i. All aspects of support provided to DSME pursuant to its 2015 restructuring, including, 
but not limited to, the following:  
a. KDB's commitment in 2015 to provide 2.27 trillion KRW in the form of additional 
short- and long -term loans, as well as KDB 's subsequent provision of such 
loans;  
b. KDB's acquisition in 2015 of 75.8 million newly -issued DSME shares for 
383 billion KRW; and  
c. KEXIM 's commitment in 2015 to provide 1.60 trillion KRW in the form of 
additional short - and long -term loans, as well as KEXIM 's subsequent provision 
of such loans.  
ii. All aspects  of support provided to DSME pursuant to its 2016 restructuring, including, 
but not limited to, the following:  
a. KDB's agreement to the cancellation, in 2016, of 60.2 million of its shares in 
DSME without compensation and the reduct ion in value by 10:1 of the 
213 million remaining shares in DSME;  
b. KDB's debt -to-equity swap in 2016 of 1.79 trillion KRW; and  
c. KEXIM 's purchase in 2016 of 1.00 trillion KRW in convertible bonds issued by 
DSME.  
iii. All aspects  of support provided to DSME pursu ant to its 2017 restructuring, including, 
but not limited to, the following:  
a. KDB's debt -to-equity swaps in 2017 of 319 billion KRW for all unsecured claims 
concerning DSME;  
b. Korea 's entrustment in or direction of private financial institutions to participa te 
in debt -to-equity swaps in 2017 and 2018 of 1.36 trillion KRW for unsecured 
claims concerning DSME;  
c. KEXIM 's agreement to purchase, and ultimate purchase in 2017 and 2018, of 
1.33 trillion KRW in convertible bonds issued by DSME;  
d. KDB's purchase in 2017 of 152 thousand shares in Daehan Shipbuilding Co., 
Ltd. (Daehan) from DSME for 1.52 billion KRW;  
e. KDB's commitment in 2017 to provide 1.45 trillion KRW of additional loans, as 
well as KDB 's subsequent provision of such loans; and  
f. KEXIM 's commitment in 2017  to provide 1.45 trillion KRW of additional loans, 
as well as KEXIM 's subsequent provision of such loans.  
 
1 Throughout this request, "DSME ," and "DSME and related entities " include DSME, any predecessor 
entities to DSME, any current DSME affiliates or related entities, and any actual or planned successor entities 
to DSME, including each person or entity that directly, or indirectly through one or more intermediaries  or 
relationships, controls or controlled DSM E. WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  iv. All aspects  of support provided to DSME and/or HHI Group2 pursuant to HHI Group 's 
acquisition of DSME 's shares including, but not limited to, the foll owing:  
a. KDB's commitment to release all its shares in DSME (59.7 million shares valued 
at 2.09 trillion KRW) in exchange for 9.12 million convertible preferred shares 
and 6.10 million common shares in Korea Shipbuilding & Offshore Engineering 
Co., Ltd.;  
b. KDB's guarantee to provide an additional 1 trillion KRW in financial assistance 
in case of a fund shortage; and  
c. Any other aspects of support provided to DSME and HHI Group pursuant to 
corporate restructuring or reorganization plans from 2018 onward, including 
additional support provided as a result of any changes in the terms or conditions 
of the acquisition of DSME by HHI Group.  
v. Any other aspects of support provided to DSME and related entities pursuant to 
corporate restructuring from 2015 onward.  
b. All Korean  measures related to the restructuring of Korean shipbuilders other than DSME 
since 2007, including restructurings of Sungdong Shipbuilding & Marine Engineering Co., 
Ltd. (Sungdong), STX Offshore & Shipbuilding Co., Ltd. (STX) and Daehan.  
2. Guarantee s and Other Insurance for Financing Related to Commercial Vessel Orders 
Placed with Korean Shipbuilders  
Japan is concerned about the provision by Korea, whether directly and/or through public and private 
institutions owned, controlled, entrusted and/or di rected by the Korean Government, of guarantees 
or other types of insurance on sales -specific payments or financing on non -commercial terms.  Public 
and private institutions owned, controlled, entrusted and/or directed by the Korean Government 
provide guarantees or other insurance at a preferential rates and/or on terms otherwise unavailable 
on the market for payments and/or financing related to a commercial vessel order placed with a 
Korean shipbuilder in case the Korean shipbuilder or the customer fai ls to perform its obligations 
pursuant to the relevant agreement(s) relating to the purchase of commercial vessels.  This support 
includes Refund Guarantees (RGs), re -guarantees of RGs and guarantees/insurance covering 
financing for shipbuilders provided by  a number of Korean public and private institutions owned, 
controlled, entrusted and/or directed by the Korean Government, including KEXIM, K -Sure, KDB, 
the Industrial Bank of Korea (IBK) and the Korea Credit Guarantee Fund (KODIT).  These measures 
include,  but are not limited to, the following:  
 
a. All Korean measures providing guarantees from KEXIM for prepayments from customers 
to Korean shipbuilders, including RGs.  These measures include, but are not limited to, the 
following:   
i. RGs provided  by KEXIM for ex port sales pursuant to the KEXIM Act;  
ii. RGs provided  by KEXIM in the form of Advance Payment Bond (which provides 
guarantees in the form of bonds ensuring the beneficiary (i.e., the 
buyer/sponsor/importer (or their agent) in an export transaction) will be r eimbursed 
for down payments for purchases from an exporter in the event the exporter fails to 
fulfil its contractual obligations) and in the form of Performance Bond (which provides 
guarantees in the form of bonds to ensure that the beneficiary will be rei mbursed for 
a certain portion of the contracted amount for purchases from an exporter in the event 
the exporter fails to fulfil its contractual obligations);  
 
2 "HHI Group " include s Hyundai Heavy Industries Co., Ltd.( HHI);  any predecessor entities to HHI; any 
current HHI affiliates , related entities,  or parent or holding companies;  and any actual or planned success or 
entities to HHI, including each person or entity that directly, or indirectly through one or more intermediaries 
or relationships, controls or controlled HHI, is or was controlled by HHI, or is or was under common control 
with HHI.  WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  iii. RGs provided by KEXIM in connection with an agreement involving KDB, KEXIM, 
K-Sure and certain oth er Korean banks pursuant to DSME 's 2015 restructuring to 
provide prepayment RGs for orders placed with DSME;  
iv. RGs provided by KEXIM to small -and medium -sized shipbuilders covering payments 
from customers to these shipbuilders; and  
v. RGs provided by KEXIM cov ering an order of five crude oil tankers by a Greek shipping 
company and accepted by Sungdong in July 2017.  
b. All Korean measures providing guarantees from K -Sure for prepayments from customers 
to Korean shipbuilders, including RGs.  These measures include, b ut are not limited to, the 
following:  
i. RGs provided by K -Sure for export sales pursuant to the K -Sure Act;  
ii. RGs provided by K -Sure in the form of Advanced Payment Bond (which provides 
guarantees in the form of bonds ensuring the beneficiary will be reimbur sed for down 
payments in the event that the contracted export is not performed) and in the form of 
Performance Bond (which provides guarantees in the form of bonds ensuring the 
beneficiary will be reimbursed for damages arising out of the exporter 's failur e to fulfil 
its contractual obligations under industrial equipment export contracts or overseas 
construction contracts);  
iii. RGs provided by K -Sure in connection with an agreement involving KDB, KEXIM, 
K-Sure and certain other Korean banks pursuant to DSME 's 2015 restructuring to 
provide prepayment RGs for orders placed with DSME; and  
iv. RGs provided by K -Sure to small -and medium -sized shipbuilders covering payments 
from customers to these shipbuilders.  
c. All Korean measures providing guarantees from KDB for prepaym ents from customers to 
Korean shipbuilders, including RGs.  These measures include, but are not limited to, the 
following:  
i. RGs provided by KDB for export sales pursuant to the KDB Act;  
ii. RGs provided by KDB as part of its Marine Industry Finance ( 해양산업금융 ) activities 
(which guarantee down payments and are provided to strengthen the competitiveness 
of Korean shipbuilders);  
iii. RGs provided by KDB in connection with an agreement involving KDB, KEXIM, K -Sure 
and certain other Korean banks pursuant to DSME 's 2015 restr ucturing to provide 
prepayment RGs for orders placed with DSME;  
iv. RGs provided by KDB in connection with an agreement involving KDB and certain other 
Korean banks pursuant to DSME's 2017 restructuring to provide prepayment RGs for 
orders place with DSME;  
v. RGs provided by KDB to small -and medium -sized shipbuilders covering payments from 
customers to these shipbuilders;  
vi. RGs provided for the following orders:  
a. RGs provided by KDB around July 2015 covering prepayment for an order by 
Maersk Line for eleven container ships accepted by DSME around June 2015;  
b. RGs provided by KDB covering prepayment for an order of three tankers 
accepted by STX around April 2017;  WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  c. RGs provided by KDB covering prepayment for an order of four crude oil tankers 
accepted by STX aroun d June 2017;  
d. RGs provided by KDB around November 2017 covering prepayment for an order 
by Oceangold Tankers Inc. for two product tankers, with an option for two 
additional tankers, accepted by STX;  
e. RGs provided by KDB around November 2017 covering prepay ment for an order 
by Sambong shipping Co.Ltd. for a product tanker accepted by STX;  
f. RGs provided by KDB around November 2017 covering prepayment for an order 
by Pantheon Tankers Management Ltd. for four product tankers accepted by 
STX;  
g. RGs provided by KD B around May 2018 covering prepayment for an order by 
Oceangold Tankers Inc. and Pantheon Tankers Management Ltd. for four 
product tankers accepted by STX;  
h. RGs provided by KDB around June 2018 covering prepayment for an order by 
Oceangold Tankers Inc. for  two Medium Range tankers accepted by STX;  
i. RGs provided by KDB around September 2018 covering prepayment for an order 
for vessels accepted by STX; and  
j. RGs provided by KDB around June 2019 covering prepayment for an order of 
two product tankers accepted by STX. 
d. All Korean measures providing guarantees from IBK for prepayments from customers to 
Korean shipbuilders, including RGs.  These measures include, but are not limited to, the 
following:  
i. RGs provided by IBK for export sales pursuant to the Industrial Bank  of Korea Act; and  
ii. RGs provided by IBK to small -and medium -sized shipbuilders covering payments from 
customers to these shipbuilders.  
e. All Korean measures provided by K -Sure and KODIT, re -guaranteeing guarantees of 
prepayments from customers to Korean shipb uilders.  These measures include, but are not 
limited to, the following:  
i. Re-guarantees provided by K -Sure, including re -guarantees provided pursuant to the 
K-Sure Act;  
ii. Re-guarantees provided by K -Sure in the form of Export Bond Insurance;  
iii. Re-guarantees p rovided by KODIT, including re -guarantees provided pursuant to the 
Credit Guarantee Fund Act;  
iv. Re-guarantees provided by K -Sure or KODIT for RGs provided to small -and 
medium -sized shipbuilders covering prepayment.  These measures include, but are not 
limited  to, the following:  
a. Re-guarantees provided by K -Sure based on the Re -guarantee Program for 
Small -and-Medium -Sized Shipbuilders which was first published in the policy 
document "Measures to Vitalize the Shipbuilding Industry " 
(November  22, 2018) and further  expanded as announced in the policy 
document "Complementary Measures to the Measures to Vitalize the 
Shipbuilding Industry " (April 23, 2019); and  WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  b. Re-guarantees provided by KODIT based on the RG Issuance Encouraging 
Program which was mentioned in the polic y document "Measures to Encourage 
RG Issuance for Orders Accepted by Small -and-Medium -Sized Shipbuilding 
Companies " (August 24, 2017) and further expanded as announced in the policy 
document "Plan to Expand Financial Support to Key Industries such as 
Shipb uilding and Automotive " (June 27, 2019).  
f. Any other Korean measures providing RGs, re -guarantee guaranteeing RGs and any other 
guarantees/re -guarantees/insurance on payments and/or financing in connection with 
commercial vessel orders placed with Korean shi pbuilders.  These measures include, but 
are not limited to, the following:  
i. All Korean measures providing Export Base Insurance from K -Sure covering against 
losses sustained by financial institutions providing funds to shipping companies to help 
them purchase ships from Korean shipbuilders;  
ii. All Korean measures providing Medium - and Long -Term Export Credit Insurance from 
K-Sure covering losses sustained by financial institutions providing buyer credits 
protecting against the risk of non -payment by importers or financial institutions 
providing financing for transactions wit h deferred payment terms exceeding two years; 
and 
iii. K-Sure's provision of a guarantee for loans provided to the shipping company placing 
an export order with Hanjin Heavy Industries.  
3. Pre-Shipment Loans, Measures through the New Shipbuilding Program and Othe r 
Financing for Commercial Vessel Orders Placed with Korean Shipbuilders  
Japan is concerned about the provision by Korea, whether directly and/or through public and private 
institutions owned, controlled, entrusted and/or directed by the Korean Government , of 
pre-shipment loans and other sales -specific financing on non -commercial terms and/or on terms 
otherwise unavailable on the market provided to Korean shipbuilders or their customers.  This 
financing includes: (1) provision of loans to finance production  or customers ' purchases of 
commercial vessels produced by Korean shipbuilders; (2) purchase of bonds to fund customers ' 
purchases of commercial vessels produced by Korean shipbuilders; and (3) capital injections to 
finance customers ' purchases of commerci al vessels produced by Korean shipbuilders.  This financing 
is offered by a range of Korean public and private institutions owned, controlled, entrusted and/or 
directed by the Korean Government, including KEXIM.  
 
As detailed in policy documents such as the  "Development Strategy for the Shipbuilding Industry " 
(April 5, 2018)  and the "Five-Year Marine Transportation Industry Rebuilding Plan (2018 -2022) " 
(April 5, 2018) , Korea is developing and executing a plan to support shipbuilders and shipping 
companies by  providing financial support for purchases of commercial vessels from Korean 
shipbuilders.  Further, Korean public and private institutions owned, controlled, entrusted and/or 
directed by the Korean Government will support the launching of vessels and ensur e liquidity for 
shipping companies, through means that include the provision of financing.  
 
These measures include, but are not limited to, the following:  
 
a. All Korean measures providing Export Implementation Fund Loans from KEXIM to Korean 
shipbuilders to  produce commercial vessels for export orders;  
b. All Korean measures providing pre -shipment loans to Korean shipbuilders;  
c. All Korean measures providing support for purchases of commercial vessels for more than 
adequate  remuneration and/or loans and leasing o f commercial vessels at below -market 
rates pursuant to the New Shipbuilding Program, including, but not limited to, the 
following:  
i. KOBC's, Korea Asset Management Corporation ( KAMCO )'s, K -Sure's, KDB's and 
KEXIM's provision  of loans and other financing tota lling approximately 2.15 trillion WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  KRW in connection with an order placed by Hyundai Merchant Marine in 2017 for seven 
container carriers from DSME, five container carriers from Samsung Heavy Industries 
and eight container carriers from HHI;  
ii. KDB's, KEXIM 's, KAMCO 's, KDB Capital 's and K -Sure's provision of loans and other 
financing totalling approximately 250 billion KRW in connection with an order placed 
by Polaris  Shipping for three very large ore carriers (VLOCs) from HHI in 2016 through 
the New Shipbuildi ng Program; and  
iii. The provision  of financing to Hyundai Merchant Marine, a shipping company, in relation 
to its purchase of five very large crude carriers (VLCCs) from DSME.  
d. All Korean measures providing Export Base Fund Loans from KEXIM, solely or jointly with 
K-Sure, to finance the pu rchase of commercial vessels from Korean shipbuilders, including, 
but not limited to, the following:  
i. KEXIM's and K -Sure's provision of financing of 170 million USD each for a 680 million 
USD order by Oceanbulk Container Management SA;  
ii. KEXIM 's and K -Sure's provision of financing of 400 million USD (205 million USD in 
loans and 195 million USD in overseas loan guarantees) and 100 million USD, 
respectively, for a 1.36 billion USD order by Dorian LPG; and  
iii. KEXIM 's provision of financing of 77 million USD, along with a guarantee for an 
additional 10 million USD in loans from commercial banks, for a 174 million USD order 
by Container  Carriers.   
e. All Korean measures where Korean public and private institutions owned, controlled, 
entrusted and/or directed by the Korea n Government provided support to shipping 
companies and/or ship owners that have placed or would place an order with a Korean 
shipbuilder, including but not limited to:  
i. Sale-and-lease-back arrangements, capital injections, the purchase of perpetual bonds 
and other means of providing financing.  
f. Any other Korean measures providing financial assistance to Korean shipbuilders or 
shipping companies  through the provision of preferential loans, purchase of bonds, capital 
injections , the purchase of commercial vess els at above -market rates and the lease back 
of commercial vessels at below -market rates, or any other type of preferential financing.  
4. Eco-Ship Replacement Subsidies  
Japan is concerned about the provision by Korea, directly and/or through public and private 
institutions owned, controlled, entrusted and/or directed by the Korean Government, of financial 
assistance on non -commercial terms to purchasers of commercial vessels produced by Korean 
shipbuilders, including providing price support ( i.e., cover a portion of the cost) for the purchases of 
commercial vessels that comply with certain environmental standards from Korean shipbuilders.  
 
In 2017, the Korean Ministry of Oceans and Fisheries, a division of the Korean Government, 
announced that it planned to implement a system to provide price support for the purchase of newly 
built vessels when replacing an old ship with an "eco-ship," or highly energy -efficient ship.  Pursuant 
to the "Development Strategy for the Shipbuilding Industry " and the "Five-Year M arine 
Transportation Industry Rebuilding Plan (2018 -2022) ", Korea is expanding these efforts to 
encourage and support the replacement of existing commercial vessels with eco -ships.  Pursuant to 
the Eco -Ship Replacement Subsidies measures, the Korean Governm ent provides cash payments to 
cover 10 -20% of the price of an order for a new ship that meets certain environmental requirements 
if the purchaser is replacing an old ship.  In addition, Korea directly and/or through public and private 
institutions owned, co ntrolled, entrusted and/or directed by the Korean Government, will provide 
interest rate support to financial institutions that provide financing for projects pursuant to the 
Eco-Ship Replacement Subsidies measures.  
 WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  In 2018, the Korean Government also ena cted the Act on the Promotion and Development of 
Environmentally Friendly Ships (effective January 1, 2020) to further expand these efforts to 
encourage and support the replacement of existing commercial vessels with eco -ships.  
 
These measures include, but  are not limited to, the following:  
 
a. All Korean measures supporting the construction of 50 commercial vessels by 2022 
envisioned  by the Five -Year Marine Transportation Industry Rebuilding Plan (2018 -2022), 
including, but not limited to:  
i. Korea's provision o f funding, decided around March or April 2018, for Sinokor Merchant 
Marine's purchase of a new 1,800TEU container carrier from Hyundai Mipo Dockyard;  
ii. Korea 's provision of funding for H -Line Shipping Co., Ltd. 's purchase of two new 
180,000 deadweight tonnage bulkers  from Hyundai Samho Heavy Industries Co., Ltd. 
as published on October 12, 2018;   
iii. Korea 's provision of funding for Hyundai Merchant Marine Co., Ltd 's purchase of new 
vessels from Korean shipbuilders reported in November 2018;  
iv. Korea's provision of funding for Namsung Shipping  Co., Ltd. 's purchase of two new 
1,000TEU container carriers from Dae Sun Shipbuilding & Engineering  Co., Ltd. As 
reported in November 2018;  
v. Korea 's provision  of funding for Pan Continental Shipping Co ., Ltd.'s purchase of a new 
1,000TEU container carrier from Dae Sun Shipbuilding & Engineering  Co., Ltd. as 
reported in March 2019; and  
vi. Korea 's provision of funding for H -Line Shipping Co., Ltd. 's purchase of a new 180,000 
deadweight tonnage bulker from Hyundai Samh o Heavy Industries Co., Ltd.  as 
published on July 12, 2019.  
b. All Korean  measures supporting the construction of commercial vessels pursuant to the 
Act on the Promotion and Development of Environmentally Friendly Ships: and  
c. Any other  Korean measures providin g financing to purchasers of vessels that comply with 
set environmental standards and that are produced by Korean shipbuilders.  
5. Other Korea's Support for Commercial Vessel Purchases  
Japan is concerned about the provision by Korea, directly and/or through public and private 
institutions owned, controlled, entrusted and/or directed by the Korean Government, of financial 
assistance on non -commercial terms to Korean shipbuilders and/or purchasers, lessors, lessees 
and/or operators of commercial vessels produce d by Korean shipbuilders.  As detailed in policy 
documents, such as the "Development Strategy for the Shipbuilding Industry ", the "Five-Year Marine 
Transportation Industry Rebuilding Plan (2018 -2022) ", the "Measures to Vitalize the Shipbuilding 
Industry ", the "Complementary Measures to the Measures to Vitalize the Shipbuilding Industry ", 
"Progress and Main Prospects of the Five -Year Marine Transportation Industry Rebuilding Plan 
(2018 -2022) " (April 23, 2019), "Vision and Strategy of the Manufactu ring Industry Renaissance " 
(June 19, 2019) and "Innovation Strategy on New Marine and Fishery Industries " 
(October  10, 2019), Korea is developing and executing a plan to support shipbuilders and shipping 
companies, including by directly purchasing, or faci litating the purchase of, commercial vessels from 
Korean shipbuilders.  Specifically, these measures include, but are not limited to, the following:  
 
a. All Korean measures designed to "increase contracting and public orders … in accordance 
with the marine tra nsportation industry rebuilding plan," as described in the "Development 
Strategy for the Shipbuilding Industry";  
b. All Korean measures related to the KOBC 's investment in new commercial vessels and 
financing of new commercial vessels produced by Korean shipb uilders, including, but not 
limited to, the following:  WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  i. The planned equity investments of 30 percent of the construction costs for up to 
40 vessels.  
c. Any other Korean measures providing for the purchase of commercial vessels from Korean 
shipbuilders by the Korean Government for purposes of supporting the shipbuilding and 
shipping industries.  
6. Amendments and Other Measures  
This request for consultations extends to any amendments, revisions, implementation or measures 
related to the measure s described above, as well as the laws and practices on which the measures 
listed above are based or that they reflect or constitute.  
 
In addition, this consultation request extends to any other measures that involve a financial 
contribution by Korea that,  whether directly or indirectly, confer a benefit to Korean shipbuilders 
and/or lessors, lessees, owners and/or operators of commercial vessels produced by Korean 
shipbuilders.  
 
7. Legal Basis  
Japan is concerned that the measures described in Sections 1 throu gh 6 above are inconsistent with 
Korea 's obligations under certain provisions of the SCM Agreement . In particular, these measures 
appear to be specific subsidies that cause adverse effects to Japan 's interests as provided in:  
a. Article  1.1 of the SCM Agreement  because, in each instance, a subsidy exists in that there 
is a financial contribution and a benefit is thereby conferred.  
b. Article  2 of the SCM Agreement because, in each instance, the subsidies are specific.  
c. Articles  5 (a) and (c)  and 6.3 (a), (b) and (c) of the SCM Agreement  because the measures 
are specific subsidies within the meaning of Articles 1 and 2 of the SCM Agreement  that 
are causing or threatening to cause adverse effects to the interests of Japan in the form 
of injury to Japan 's domestic shipbuilding industry and serious prejudice to the interests 
of Japan, including through displacement and impedance of imports and exports of the 
Japanese like product into Korea and third country markets, and significant price 
undercut ting, price suppression, price depression and lost sales in the same market or 
markets.  
Japan is also concerned that the measures described in Sections 1 through 6 above appear to be 
export subsidies inconsistent with Articles 3.1 (a) and 3.2 of the SCM A greement . 
 
Japan is further concerned that the measures described in Sections 1 through 6 above appear to be 
contingent upon the use of domestic over imported goods, thus are inconsistent with Articles 3.1 (b) 
and 3.2 of the SCM Agreement ; appear to fail t o accord products imported into Korea treatment no 
less favourable than that accorded to like products of Korean origin in a manner consistent with 
Article III:4 of the GATT 1994 ; and appear to fail to accord immediately and unconditionally any 
advantage, favour, privilege or immunity granted by Korea to products originating in other countries 
to like products originating in Japan with respect to all matters referred to in Article III:4 of the 
GATT  1994, in a manner consistent with Article I:1 of the GATT 1 994. 
 
In accordance with Articles 4.2 and 7.2 of the SCM Agreement , Japan attaches a statement of 
available evidence with regard to the existence and nature of the subsidies in question, as well as 
the injury caused to the domestic industry, and/or serious  prejudice caused to the interest of Japan.  
The available evidence is listed in Annex to this request.  
 
Japan reserves the right to request that Korea produce further information and documents regarding 
the measures in question, to offer further evidence of each of the measures and potential violations 
listed above, and to raise further facts and claims under other provisions of the covered agreements 
and address additional measures during the course of consultations.  
 WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  Japan looks forward to receiving a re ply from Korea to this request for consultations and to find a 
mutually convenient date for consultations.  
 
 
_______________  WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
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  ANNEX  
Statement of Available Evidence  
 
Japan 's request for consultations dated January 31, 2020 identifies the subsidies that are the subject 
of this request for consultations.  
 
The evidence set out below is evidence available to Japan at this time regarding the existence and 
nature of those subsidies, as well as the injury caused to the domestic industry, and/or serious 
prejudic e caused to the interest of Japan.  Japan reserves the right to supplement or alter this list in 
the future, as required.  Certain evidence may be indicative of the existence and nature of more than 
one type of subsidy or measure.  However, for simplicity, al l sources of evidence are only listed once.  
 
The evidence presently available to Japan includes the following:  
 
General  
 
• Industrial Finance Division, Financial Services Commission, Korea Development Bank Act, 
Act No.14122 (Sept. 30, 2016), 
http://www.law.go.kr/lsInfoP.do?lsiSeq=182121&efYd=20160930#0000 . 
• International  Economic Affairs Bureau, Ministry of Economy and Finance, Export -Import 
Bank of Korea Act, Act No. 13453 (Aug  1, 2016), 
http://www.law.go.kr/lsInfoP.do?lsiSeq=173581&efYd=20160801#0000 . 
• Export  and Import Division, Ministry of Trade, Industry and Energy, Trade Insurance Act, Act 
No.16797 (Dec 10, 2019), 
http://www.law.go.kr/lsInfoP.do?lsiSeq=212215&efYd=20191210#0000 . 
• Shipping  Policy Division, Ministry of Oceans and Fisheries, Korea Ocean Business Corporation 
Act, Act No. 16703 (Dec 3, 2019),  
http://www.law.go.kr/lsInfoP.do?lsiSeq=211895&efYd=201 91203#0000 . 
• Industrial  Finance Division, Financial Services Commission, Credit Guarantee Fund Act, Act 
No. 16652 (Nov 26, 2019),  
http://www.law.go.kr/lsInfoP.do?lsiSeq=21169 1&efYd=20191126#0000 . 
• Industrial  Finance Division, Financial Services Commission, Industrial Bank of Korea Act, Act 
No. 14839 (July 26, 2017),  
http://www.law.go.kr/lsInfoP.d o?lsiSeq=195312&efYd=20170726#0000 . 
• Korea  Development Bank, Articles of Incorporation of Korea Development Bank (June 26, 
2019), https://www.kdb.co.kr/index.jsp , accessible by searching "정관" 
• Export -Import Ban k of Korea, Articles of Incorporation of Export -Import Bank of Korea 
(Aug 27, 2019), 
http://www.alio.go.kr/popSusi.do?apbaId=C0223&reportFormRootNo=21110 , accessible by 
searching "정관". 
• Korea  Trade Insurance Corporation, Articles of Incorporation of Korea Trade Insurance 
Corporation (Jan. 1, 2015),  
https://www.ksure.or.kr/en/company/articles.do . 
• For All the Relev ant Ministries and Government Agencies, Ministry of Trade, Industry and 
Energy, The Development Strategy for the Shipbuilding Industry through Three Major 
Innovations – Cost, Technology, and Systems Innovation (Apr. 5, 2018), 
https://www.gov.kr/portal/ntnadmNews/1413013 . 
• For All the Relevant Ministries and Government Agencies, Ministry of Economy and Finance, 
The Five -Year Marine Transportation Industry Rebuilding Plan (2018 -2022)  (Apr. 5, 2018), 
http://www.mosf.go.kr/com/synap/synapView.do?atchFileId=ATCH_000000000007840&file
Sn=3 . 
• For All the Relevant Ministries and Government Agencies, Ministry of Economy and Finance, 
Plans to Enhance the Competitiveness of the Shipbuilding Industry (Oct. 31, 2016), 
http://www.moef.go.kr/com/synap/synapView.do?atchFileId=ATCH_000000000003180&file
Sn=1 . 
• State  Affairs  Committee, The Secretariat of the National Assembly, Minutes of the 1st State 
Affairs Committee Meeting of the 344th National Assembly  (Aug. 8, 201 6), 
http://likms.assembly.go.kr/record/mhs -40-010.do#none . 
• State  Affairs  Committee, The Secretariat of the National Assembly, Minutes of the 6th State 
Affairs Committee Meeting of the 343rd National Assembly  (July 11, 2016), 
http://likms.assembly.go.kr/record/mhs -40-010.do#none . WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
- 12 - 
 
  • IHS Markit , https://maritime.ihs.com/ . 
• Clarksons  Research , https://sin.clarksons.net/  
 
Corporate Restructuring Measures to Support Korean Shipbuilders  
 
• DSME , Quarter  Reports (Nov. 16, 2015; May. 16, 2016; Nov. 14, 2016; May. 15, 2017; 
Nov. 14, 2017).  
• DSME , Half-Year Reports (Aug. 16, 2016; Aug. 14, 2017).  
• DSME , Correction  Notification (Report), Business Report 2015 (Oct. 19, 2017).  
• DSME , Correction  Notification (Repor t), Business Report 2016 (Oct. 19, 2017).  
• DSME , Correction  Notification (Report), Business Report 2017 (May. 23, 2018).  
• KOREA  INVESTORS  SERVICE, Despite the Capital Increase, Downward Revision to Daewoo 
Shipbuilding & Marine Engineering Co., Ltd. 's Credit Rating is Maintained (Dec 27, 2016), 
accessible by searching "대우조선해양㈜  자본확충에도  신용등급  하향검토  유지"at 
http://www.kisrating.com/search.do .  
• DSME, Increase  in short -term borrowings / Decision to increase short -term borrowings, 
(Nov.04, 2015; Mar.25, 2016; Sep.21, 2016; May 17, 2017).  
• KDB, Main Creditor Bank 's Countermeasure related to DSME (July 21, 2015), accessible by 
searching "産銀, 대우조선해양 (주) 관련 주채권은행  대응방안" at 
https://wbiz.kdb.co.kr/wb/simpleJsp.do# .(Last accessed July 30, 2018; website no longer 
available from link.)  
• DSME , Main Matter Report / Mandatory Exchange Report (Dec. 22, 2015; Nov. 10, 201 6; 
Dec 12, 2016; June 13, 2017; June 28, 2017).  
• DSME , Correction  Notification (Report), Main Matter Report / Mandatory Exchange Report 
(June 28, 2017; Aug. 11, 2017; Dec. 22, 2017; Mar. 14, 2018; Mar. 15, 2018).  
• DSME , Investment  Manual (Dec. 28, 2016), 
https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20161228000006 . 
• Daehan , Changes  in Largest Shareholder and Others ' shareholdings (Jan. 17, 2017), 
http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170117000302 . 
• Korea  Investors Service, Audit of Risk of Loss of Financial Institution following DSME 
Restructuring Implementation Plan (Mar. 24, 2017), accessible by searchin g "대우조선해양  
구조조정  추진방안에  따른 금융기관  손실부담  점검 - 자율적  구조조정 : 신용도  영향 제한적 . 단, P-Plan 
실행여부  모니터링  필요" at http://www.kisrating.com/search.do .  
• Local Industry  Employment Policy Department, Ministry of Employment and Labor, Progress 
Report on Additional Employment and Employment Support Policy for the Shipbuilding 
Industry (Feb. 28, 2017), 
http://www.moel.go.kr/info/publict/publictDataView.do?bbs_seq=1491888311244 . 
• Yeun-Jung Kim, Dong -Hyun Kim, Big 3 Shipbuilding Completed 40% of the Restructuring 
Plan, Hyundai Heavy Industry Leads with 56% , YONHAP NEWS (Dec. 26, 2016), 
http://www.yonhapnews.co.kr/bulletin/2016/12/26/0200000000AKR20161226080951003.H
TML. 
• Industrial  Finance Division, Financial Services Commission, Plans Execute d to Reorganize the 
Role of Policy Financing in Order to Foster Policy Financing Abilities to Support Creative and 
Consumer -based Economy  (Aug. 27, 2013), 
http://www.fsc.go.kr/info/ntc_news_view.jsp?menu=7210100&bbsid=BBS0030&no=29319 . 
• KEXIM website , Hub of Marine Financing, Marine Finance Center Opens  (Nov. 10, 2014), 
https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=32&menui
d=001005005001&pagesize=10&boardtypeid=36&boardid=50426 . 
• HHI, Presentation  on Citi Korea Investor Conference 2019 , http://www.hyundai -
holdings.com/download.php?filepath=http%3A%2F%2Fwww.hyundai -
holdings.co.kr%2Fdata%2Fhhigroup -
en%2Fpageplus%2FirDataHHoldings%2F1558331080_irDataHHoldings.pdf&filename=CITI%
20Korea%20Investor%20Conference%202019.pdf .  
• HHI, (Correction) Main M atter Report (Capital Increase Decision) (Mar. 8, 2019), 
http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20190308000911 . 
• HHI, Other  Management Issues (Voluntary Disclosure) (Mar. 8, 2019), 
http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20190308801082 .  
• Kyung -Min Kim, First Step but Rough HHI -DSME Acquisition Ahead  – Foreign Antitrust 
Reviews, Union Opposition, More Hurdles to Come , MK ECONOMY (June 17, 2019),  
http://news.mk.co.kr/v2/economy/view.php?year=2019&no=425428 . WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
- 13 - 
 
  • WonSuk  Oh, HHI-KDB, Signing MOU Regarding DSME Acquisition … Shipbuilding Industry 
System Reform on Track , JOONGANG ILBO (Mar. 8, 2019), 
https://news.joins.com/article/23405380 . 
• DSME , Other Management Issues (Voluntary Disclosure) (Mar. 15, 2019), 
http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20190315801525 .  
• Shin-Yeong Park, Ji -Eun Jung, Pouring 4 Trillion and… SungDong Ultimately into Court 
Receiv ership , HANKYUNG (Mar. 9, 2018), 
http://news.hankyung.com/article/2018030877501 .  
• STX, Business Report 2017 (Mar. 29, 2018), 
http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20180329000183 . 
• Tae-Sub Byun, Shifting Responsibilities to Government After Providing Blood… SungDong 
and STX Became Textbook Examples of R estructuring Failures , HANKOOKILBO (Mar. 8, 
2018), http://hankookilbo.com/v/f972171924af46d4b527cf6f2f252dc4 . 
• STX, Applying for Court Receivership… Court, Will Decide on Restructurin g After Assessing  
Ability to Rehabilitate , GLOBAL VIEWS  (May 27, 2016), 
http://www.ajunews.com/view/20160527215316018 . 
• KDB, Report on Status of Large Volume Holding of Shares  (Dec. 24, 2015), 
http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20151228000228 . 
• Yeol-Jung Kim, DSME, Securities Issuance Performance Report  (June 28, 2017),  
https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170628000184 . 
• KEXIM , Large Shareholdings Status Report  (July 5, 2017), 
http://dart.fss.or.kr/dsaf001/mai n.do?rcpNo=20170705000289 . 
• KDB, Large Shareholdings Status Report  (Aug. 12, 2017), 
http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170818000019 . 
• DongMyung  Accounting Firm, Audit Report on DHSC 's Financial Reports  (Mar. 2, 2018), 
http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20180323000922 . 
• SamKyeong  Accounting Corporation, Audit Report  for SungDong 's Financial Reports (Mar. 
20, 2018), http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20180412000689 . 
 
Guarantees and Other Insurance for Financing Related to Commercial Ve ssel Orders 
Placed with Korean Shipbuilders  
 
• KEXIM  website , Export -Related Performance Guarantee, 
https://www.koreaexim.go.kr/site/homepage/menu/viewMenu?menuid=002003002002001h
ttps://www.koreaexim.go.kr/site/homepage/menu/viewMenu?menuid=002003002002001 . 
• JoongAng  Ilbo, Prime Minister of South Korea Stated "We must finish the investigat ion of 
Daewoo Shipbuilding in as short a period as possible"  (Jul. 5, 2016),  
http://japanese.joins.com/article/879/217879.html . 
• KDB website, Maritime Industry Finance, https://www.kdb.co.kr/index.jsp , accessible by 
searching "해양산업금융 ". 
• Kang Gu-Gyue,  Daewoo Shipbuilding and Marine Engineering's Debt to Equity Swap Price at 
40,350 won (Apr. 6, 2017), 
http://view.asiae.co.kr/news/view.htm?idxno=2017040610571917309 . 
• Crystal  Chan, DSME 's creditor banks: Business as usual , FAIRPLAY (July 23, 2015), 
https://dev.fairplay.ihs.com/article/18716/business -usual -say-dsme -creditor -banks .(Last 
accessed July 30, 2018; website no longer available from link.)  
• Jae-Ho Jeon,  KDB issued  RGs for low price order accepted by STX with deposit security and 
raised concerns,  Chosen Biz(July 31, 2017),  
https://news.naver.com/main/read.nhn?mode=LSD&mid=sec&si d1=101&oid=366&a  (Last 
accessed July 30, 2018; website no longer available from link. ). 
• Hyung -Min Kim, STX Shipbuilding Again Embroiled in Controversy for Low Cost Bid, KDB to 
Re-conduct Due Diligence, ChosunBiz (July 20, 2017 10:13 AM), 
http://biz.chosun.com/site/data/html_dir/2017/07/20/2017072001061.html . 
• Ji-Woong  Kim, STX Shipbuilding adds 4 oil tankers to "RG Issuance "…and the management 
normalization  speeded up , EBN Industry News (Nov.25, 2017),  
http://www.ebn.co.kr/news/view/919128 . 
• Lee Si -woo, STX breathed a sigh of relief, obtained RGs for seven vessels whose orders were 
placed with STX , idomin (Nov 25, 2017), 
http://www.idomin.com/news/articleView.html?idxno=553036  
• Ji-Woong  Kim, STX was issued RG for an order of 4 oil tankers, green light ahead additional 
order placements , EBN Industry News (May 7, 2018), 
http://www.ebn.co.kr/news/view/940482 . WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
- 14 - 
 
  • Ho-Seoung  Yu, 2 months after STX got out of the crisis of authoritative supervision, 
accelerating management reconstruction and acceptance of new orders , New Daily (June 14, 
2018), http://biz.newdaily.co.kr/site/data/html/2018/06/14/2018061400053.html . 
• Ji-Woong  Kim, South Korea  v. China, differences of conditions regarding shipbuilding 
industry , EBN Industry News (October 4, 2018),  
http://bada.ebn.co.kr/news/view/132090?kind=&key=&shword=& page=672&period= . 
• Mikyung  Kim, STX succeeded in getting RG issued for the first time this year; President Jang 
Yungun  stated "This year will be the dawn year of the restructuring." , Edaily (June 17, 
2019), 
https://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=018&aid=000
4404946 . 
• K-SURE  website, Export Bond Insurance , 
https://www.ksure.or.kr/en/product/product_02_09.do .  
• K-Sure, Guide to the Trade Insurance (Export Guarantee Insurance).   
• For All the Relevant Ministries and Government Agencies, Ministry of Economy and Finance, 
Measur es to Encourage RG Issuance for Orders Accepted by Small -and-Medium -Sized 
Shipbuilding Companies (Aug. 24, 2017), 
https://www.moef.go.kr/nw/nes/detailNesDtaView.do?searchBbsId1=MOSFBBS_000000000
028&searchNttId1=MOSF_000000000010404&menuNo=4010100 . 
• Economic  Relations Ministerial Meeting, Ministry of Economy and Finance , Measures to 
Support Innovative Growth and Creation of Jobs  (Oct. 24, 2018). 
http://www.moef.go.kr/nw/nes/detailNesDtaView.do?menuNo=4010100&searchNttI d1=MOS
F_000000000019825&searchBbsId1=MOSFBBS_000000000028 . 
• For All the Relevant Ministries and Government Agencies,  Ministry of Trade, Industry and 
Energy, Measures to Vitalize the Shipbuilding Industry  (Nov. 22, 2018),  
http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_cd_n=81&bbs_seq_n
=161061 . 
• For All the Relevant Ministries and Government Agencies,  Ministry of Trade, Industry and 
Energy, Complementary Measures to the Measures to Vitalize the Shipbuilding Industry  
(April 23, 2019), 
http://www.motie.go .kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_cd_n=81&bbs_seq_n
=161588 . 
• K-Sure website,  K-Sure adopts Ship Financing Insurance in order to increase orders received 
by domestic shipbuilders  (Aug. 22, 2013), https://www.ksure.or.kr/news/press_l.do , 
accessible by searching "K-sure, 침체에  빠진 국내조선소  수주확대를  위해 세계 최초로  「
선박채권보험 」 도입". 
• K-Sure website, K-Sure provides US$900 million trade insurance support for the export 
order to Greece placed on domestic shipbuilders for 8 high -value -added LNG ships  (June 26, 
2014), https://www.ksure.or.kr/news/press_l.do , accessible by searching "무역보험공사 , 국내 
조선사의  고부가가치  LNG선 8척 對그리스  수출에  9억 달러 무역보험  지원". 
• K-Sure website , K-Sure provides export bond insurance for the first time for 3 container 
ships to be exported by domestic shipbuilders to France  (Dec. 23, 2014), 
https://www.ksure.or.kr/news/press_l.do , acce ssible by searching "무역보험공사 , 프랑스  최대 
선사에게  국내 조선사가  수출하는  컨테이너선  3척에 대해 사상 최초'선박채권보험 '제공". 
• Sang-Hyun Kim, MFC, Provides Funds for Export Agreement to Hanjin Heavy Industries , 
Yonhap News (Jan. 14, 2015 9:53 AM), 
http://www.yonhapnews.co.kr/bulletin/2015/01/14/0200000000AKR20150114046600051.H
TML?input=1195m . 
• Financial  Services Commission,  Plan to Expand Financial Support to Key Industries such as 
Shipbui lding and Automotive  (June, 2019),  
• http://www.fsc.go.kr/policy/ply_comm_view.jsp?bbsid=BBS0030&page=2&sch1=&sword=&
r_url=&menu=7310100&no=33219 .  
• K-SURE  website, Export Base Insurance , 
https://www.ksure.or.kr/insur/export_bas eins01.do  .  
• K-SURE  website, Medium and Long -term Export Credit Insurance (Buyer Credit) , 
https://www.ksure.or.kr/en/product/product_02_03.do   
• MFC, Korea Trade Insurance Corporation Introd uction of Marine Finance Business , 
http://www.mfcenter.or.kr/kor/support/ksure_info.php . WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
- 15 - 
 
  Pre-Shipment Loans, Measures through the New Shipbuilding Program, and Other 
Financing Provided fo r Commercial Vessel Orders Placed with Korean Shipbuilders  
 
• For All the Relevant Ministries and Government Agencies, Ministry of Strategy and Finance, 
Current Status and Future Plans with Industry Specific Restructuring  (Dec. 30, 2015), 
https://www.fsc.go.kr/downManager?bbsid=BBS0029&no=101893 . 
• MFC website , KEXIM: Domestic Shipyard Support Systems , 
http://www.mfcenter.or.kr/kor/support/exim01_1.php . 
• KEXIM  website,  The First Fruit of the Marine Financial Center, Which Was Launched in Busan 
Last Month (Oct. 16, 2014), 
https://www.koreaexim.go.kr/site/program/board/basicboard/v iew?boardtext2=&menuid=0
01005005001&searchselect=all&searchword=%EC%98%A4%EC%85%98%EB%B2%8C%E
D%81%AC&pagesize=10&boardtypeid=36&boardid=50415 . 
• MFC, Korea Export -Import Bank: Provides total financial services for domestic and overseas 
shipping companies and  domestic shipyards , 
http://www.mfcenter.or.kr/kor/support/exim. php MFC, KEXIM, Export Performance 
Financing (Formerly Manufacture Financing and Cooperation Financing) , 
http://www.mfcenter.or.kr/kor/support/exim01_2.php . 
• For All the Relevant Ministries and Government Agencies, Ministry of Strategy and Finance,  
Implementation Progress of and Future Plans for the Maritime Industry Financial Support 
Program (Mar. 3, 2017), 
http://www.moef.go.kr/nw/nes/detailNesDtaView.do?searchBbsId1=MOSF BBS_0000000000
28&searchNttId1=MOSF_000000000008280&menuNo=4010100 . 
• KDB, Memorandum of Understanding Signed with 5 Major Policy Banks for the New Ship 
Building Program (Mar. 21, 2016), access is limited to persons with log -in information at 
KDB. 
• Dong -Kyu Kim, 18 shipping companies, 36 vessels, apply for 'Shipbuilding New Construction 
Program'…1.2 Trillion Won Scale , Yonhap News (June 3, 2018 11:00 AM), 
http://www.yonhapnews.co.kr/bulletin/2018/06/01/0200000000AKR20180601169600003.H
TML. 
• Ko-Dong  Wook, KDB and 5 Other Policy Financial Organizations Doubles the Shipbuilding 
Fund to US$2.4 , YonHap News  (Dec. 30, 2016),  
http://www.yonhapnews.co.kr/bulletin/2016/12/30/0200000000AKR20161230049000002.H
TML. 
• MFC, Korea Development Bank: the Financial Engine of Korea's Development, Global KDB, 
Corporate Financing , http://www.mfcenter.or.kr/kor/support/kdb01.php Seul-Ki Kim, KEXIM, 
Providing First Shipbuilding Fund after MFC's Establishment , ChoiceNews (Oct. 17, 2014 
9:42 AM), http://www.choicenews.co.kr/news/articleView.html?idxno=13026 .  
• Chong -Hee Jang, MFC, Providing Second Joint Support after Establishment , Leaders 
Economy Daily (Dec. 25, 2014), 
http://leaders.asiae.co.kr/news/articleView.html?idxno=13458 . 
• Kim Hyung -Min, Hyundai Merchant Marine Orders 20 Ships for 3 Trillion Won, Full 
Mobilization of KDB, KOBC, KEXIM, KSURE and KAMCO , ChosunBiz.com (S ept. 30, 2018), 
https://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=366&aid=000
0416419 . 
• Hwang  Jun-Ik, Polaris Shipping, VLOC Financing Acqu ired Through the New Ship Building 
Program,  EBN Industry News (July 30, 2018), http://www.ebn.co.kr/news/view/950312 . 
• KEXIM  website, KEXIM with Busan Bank Provides 87 million USD to Container Carrier Group  
(Aug. 24, 2015),  
https://www.koreaexim.go.kr/site/program/board/basicboard/view?boardtext2=&menuid=0
01005005001&searchselect=all&searchword=%EC%BB%A8%ED%85%8C%EC%9D%B4%E
B%84%88%EC%BA%90%EB%A6%AC%EC%96%B4%EC%8A%A4&pagesize=10&boardtyp
eid=36&board id=50542 . 
• Jong-Guk Byun, Hyundai Merchant Marine "Orders 20 Ships from Big 3 Shipbuilders ", Dong -
A News (June 5, 2018), 
http://news.donga.com/Economy/more29/3/all/20180604/90404 356/1 . 
• Maritime  Industry Team, Hyundai Merchant Marine Executes an Agreement with Korea 
Shipping and Maritime Transportation Co., Ltd. to Support Building of 5 New VLCCs, The 
Korea Maritime News  (Mar. 25, 2018 1:34 PM), 
http://www.haesanews.com/news/articleView.html?idxno=80976 . 
• K-SMART , Investment Business , http://www.ko -smart.co.kr/business/business02.php  (Last 
acces sed July 30, 2018; website no longer available from link. ). WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
- 16 - 
 
  • Min-Hee Lim, KEXIM –Busan Bank Provide 87 Million USD Ship Financing to Container 
Carriers , EBN Industry News (Aug. 24, 2015 11:08 AM), 
http:// www.ebn.co.kr/news/view/783974 . 
• Hye-Min Kim, Marine Finance Centre Provides First Ship Financing , Asia Economy (Oct. 15, 
2014 2:08 PM), http://view.asiae.co.kr/news/view.htm?idxno=2014101514000131430 . 
• Suk-Joo Lee, Marine Finance Centre Provides 500 Million Dollars to Support Domestic 
Shipbuilders to Procure Order s for LPG Ships , Kookje News (Dec. 24, 2014 8:26 PM), 
http://www.kookje.co.kr/news2011/asp/newsbody.asp?code=0200&key=20141225.220142
01507 . 
 
Eco-Ship Repla cement Subsidies  
 
• Ministry of Oceans and Fisheries, Increasing Quality of Life by Reviving the Maritime and 
Fisheries Industry and by Focused Growth Investment on Innovation  (Aug. 27, 2018), 
http://www.mof.go.kr/iframe/article/view.do?articleKey=23257&boardKey=10&menuKey=3
76&currentPageNo=1 . 
• Ministry  of Oceans and Fisheries,  2019 Eco -Friendly Facilities Improvement Second 
Maintenance Business  (Oct. 8, 2018),  
https://www.kobc.or.kr/kor/CMS/Board/Board.do?mCode=MN052&mode=view&mgr_seq=1
0&board_seq=38 . 
• Ji-Ung Kim, Sinokor Merchant Marine, Korean Marine Transport Co., and Chun Kyung 
Shipping Co., Ltd. Plan to Place Order of Vessels to Korean Shipbuilders , EBN Industry News 
(Apr. 23, 2018 4:39 PM),  http://www.ebn.co.kr/news/view/93 8859. 
• Ji-Ung Kim, Korean Marine Transport Co. and Chun Kyung Shipping Co., Ltd. Give Up 
Subsidies for New Eco -Friendly Vessel Orders , EBN Industry News (Apr. 26, 2018 3:20 PM), 
http://www.ebn.co.kr/news /view/939347 . 
• Gwi Dong  Cho, Order of public vessels worth 5.5 trillion won by next year , ChosunBiz.com 
(Apr. 5, 2018), http://biz.chosun.com/site/data/html_dir/2018/04/0 5/2018040501885.html . 
• Marine  Policy Office, Ministry of Oceans and Fisheries , A New Age of Eco -friendly LNG -fuelled 
Ocean -Going Vessels Opens (October 12, 2018),  
http://www.mof.go.kr/article/view.do?articleKey=23631&searchSelect=title&boardKey=10&s
earchEndDate=2018 -10-31&menuKey=971&currentPageNo=5 .  
• Launching shipping support system with the size of 3.2 trillion KRW next year , Korean 
Shipping Gazette ( November  28, 2018), 
http://www.ksg.co.kr/news/main_newsView.jsp?bbsID=news&bbsCategory=KSG&categoryC
ode=all&backUrl=main_news&pNum=119 987. 
• Ji Woong  Kim, Daesun Shipbuilding, acquires order of up to two container vessels , EBN 
Industry News (November 2, 2018), https://www.ebn.co.kr/news/view/960592 . 
• Recovery of container vessels follow ing LNG vessels, expect increase of orders for mid -small 
size vessels , EBN Industry  News  (March 19, 2019),  
https://www.ebn.co.kr/news/view/977060 . 
• Marine  Policy Office, Ministry of Oceans and Fisheries , Order of Third and Fourth Domestic 
LNG-fuelled Ocean -Going Vessels (July 12, 2019), 
http://www.mof.go.kr/article/view.do?articleKey=26787&searchSelect=title&searchValue=%
EC%84%A0%EB%B0%95&boardKey=10&menuKey=971&currentPageNo=1 . 
• Maritime  Industry and Technology Division, Ministry of Oceans and Fisheri es, Act on the 
Promotion and Development of Environmentally Friendly Ships, Act No.16167 (Dec. 31, 
2018), http://www.law.go.kr/lsInfoP.do?lsiSeq=206396&viewCls=ls RvsDocInfoR#0000 .  
 
Other Korea's Support for Commercial Vessel Purchases  
 
• Regional  Industrial Division, Ministry of Trade, Industry and Energy, October Announcement 
on Strategies to Strengthen the Shipbuilding Industry's Competitiveness and the Economic 
Revitalization of Shipyard Areas  (Oct. 6, 2016), 
http://www.motie.g o.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=158663&bbs_
cd_n=81&currentPage=1&search_key_n=&search_val_v=&cate_n=&dept_v=&from_brf=brf
&brf_code_v=3 . 
• For All the Relevant Ministries and Government Agencies, Ministry of Oceans and Fisheries, 
Revival Stimulated One Year After the Five -Year Marine Transportation Industry Rebuilding 
Plan (2018 -2022) Was Implemented  (April 23, 2019),  
http://www.mof.go.kr/ article/view.do?menuKey=971&boardKey=10&articleKey=25961 . WT/DS594/1 • G/SCM/D129/1 • G/L/1354  
 
- 17 - 
 
  • For All the Relevant Ministries and Government Agencies,  Ministry of Trade, Industry and 
Energy, Vision and Strategy of the Manufacturing Industry Renaissance  (June 19, 2019),  
http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_cd_n=81&bbs_seq_n
=161803 . 
• Ministry  of Oceans and Fisheries, Innovation Strategy on New Marine and Fishery I ndustries 
(October 10, 2019),  
http://www.mof.go.kr/article/view.do?articleKey=27574&boardKey=10&menuKey=971&curr
entPageNo=1 . 
• Korea Ocean Business Corporation launched to support Korea's shipping industry , 
Safety4Seas  (Apr. 7, 2018), https://safety4sea.com/korea -ocean -business -corpora tion-
launched -to-support -koreas -shipping -industry/ . 
• International  Shipping News, Korea Ocean Business Corporation to be launched on July 5 , 
Hellenic Shipping  News (Apr. 7, 2018), https://www.hellenicshippingnews.com/korea -ocean -
business -corporation -to-be-launched -on-july-5/. 
 
 
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