WT/DS571/1 
G/L/1279 
G/SCM/D121/1 
 
13 November 2018 
(18-7127)  Page: 1/11 
  Original: English 
 
KOREA – MEASURES AFFECTING TRADE IN COMMERCIAL VESSELS (JAPAN) 
REQUEST FOR CONSULTATIONS BY JAPAN 
The following communication, dated 6 November 2018, from the delegation of Japan to the 
delegation of the Republic 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 cons ultations 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 an d implemented a range of measures designed to 
provide financial support to its shipbuilders. These measures in clude providing both "producer 
support," such as direct financing provided to Korean shipbuilders that, inter alia , 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, marketing, and/or sa le or purchase of commercial vessels, including 
vessels designed to carry crude oil, liquefied natural gas (LNG), 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,  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 
(i) measures provided by the Korea Development Ba nk ("KDB"), including those provided pursuant 
to Chapter 3, Articles 18.(1).5 and 18.(1).6 of the Act on the Korea Development Bank, which states 
that, in order to achieve the purpose of the Act, KDB should provide funds for Korean businesses 
and industries to support their entry into foreig n markets, for industrial development, and for 
corporate restructuring; (ii) measures provided by the Export-Import Bank of Korea ("KEXIM"), 
including those provided pursuant to Chapter 3, Articles 18.(1).1, 18.(2).9 and 18.(5) of the Act on 
the Export-Import Bank of Korea ("KEXIM Act"), which states that, in order to achieve the purpose 
of the Act, KEXIM should provide funds to busi nesses the KEXIM board deems to be important for 
the promotion of the nation's economic exchange ; (iii) measures provided by the Korea Trade 
Insurance Corporation ("K-Sure") pursuant to the Trade Insurance Act; (iv) comprehensive measures 
adopted by Korea, including those establishing the Marine Finance Center to "strengthen marine and shipping finance"; and (v) measures provided by the Korea Ocean Business Corporation ("KOBC") 
pursuant to the Korea Ocean Business Corporation Act.  
 WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
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  These measures take the form, inter alia , of loans with interest at below-market rates, share 
subscriptions and cancellations, purchase of perp etual bonds, and debt-equity swaps, as further 
described below. They include, but are not limited to, the following: 
a) All Korean measures related to the restructuring of Daewoo Shipbuilding & Marine 
Engineering ("DSME") from 2015 onward, includ ing, 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 provision of 2.1 trillion KRW as short- and long-term loans by 
December 2016; 
b. KDB's acquisition in 2015 of 76 million newly-issued DSME shares for 
380 billion KRW; and 
c. KEXIM's commitment in 2015 of 1.6 trillion KRW in the form of 
additional short- and long-term loans to promote capital expansion, 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 million shares in 
DSME and the reduction in value by 10:1 of 75 million additional 
shares in DSME, which KDB held prior to the restructuring plan, without compensation; 
b. KDB's debt-to-equity swap in 2016 of 1.8 trillion KRW; and 
c. KEXIM's purchase in 2016 of 1.0 trillion KRW in perpetual bonds 
issued by DSME. 
iii. All aspects of support provided to DSME pursuant to its 2017 restructuring, 
including, but not limited to, the following: 
a. KDB's debt-to-equity swaps in June and August 2017 of 320 billion 
KRW for all unsecured claims concerning DSME; 
b. KEXIM's purchase in 2017 of 1.3 trillion KRW in perpetual bonds 
issued by DSME; 
c. KDB's purchase in 2017 of 150 thousand shares in Daehan 
Shipbuilding Co., Ltd. ("Daehan")  from DSME for 1.5 billion KRW; 
d. KDB's commitment in 2017 to provide 1.5 trillion KRW of additional 
loans; and 
e. KEXIM's commitment in 2017 to provide 1.5 trillion KRW of additional 
loans. 
iv. Any other aspects of support provided to DSME pursuant to company 
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 & Shi pbuilding Co., Ltd. ("STX"), and Daehan. 
2. Guarantees and Other Insurance for Financ ing Related to Commercial Vessel Orders 
Placed with Korean Shipbuilders  
 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 guarantees 
or other types of insurance on sales-specific payments or financing on non-commercial terms. Public and private institutions owned, controlled, entrus ted and/or directed by the Korean Government 
provide guarantees or other insurance at a preferential rate for payments and/or financing related 
to a commercial vessel order placed with a Korean shipbuilder in case the Korean shipbuilder or the customer fails to perform its obligations pursuant to the relevant agreement(s) relating to the purchase of commercial vessels. This support incl udes Refund Guarantees ("RGs") provided by 
KEXIM pursuant to Article 18 of the KEXIM Act. It also includes RGs and guarantees/insurance WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
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  covering export financing for shipbuilders provid ed by a number of Korean public and private 
institutions owned, controlled, entrusted and/or directed by the Korean Government, including KEXIM, KDB, and K-Sure, as well as the Korea Cr edit Guarantee Fund, which provides a guarantee 
to the financial institutions that issue RGs. These measures include, but are not limited to, the 
following: 
a) All Korean measures providing Export Bond Insurance from K-Sure covering export orders 
from Korean shipbuilders or Export Base Insurance from K-Sure covering against losses of 
financial institutions providing funds to shipping companies to help them purchase ships from 
Korean shipbuilders; 
b) All Korean measures providing Medium- and Long -Term Export Credit Insurance or RGs from 
K-Sure for prepayments  to Korean shipbuilders; 
c) All Korean measures providing RGs from KDB or KEXIM to small- and medium-sized 
shipbuilders for prepayments from customers to  these shipbuilders, and guaranteeing those 
RGs by the Korea Credit Guarantee Fund, including, but not limited to, the following: 
i. KDB issued a RG for the order of four crude oil tankers accepted by STX in June 
2017. 
d) All Korean measures providing RGs from KEXIM for prepayments from customers to Korean 
shipbuilders, including, but not limited to, the following: 
i. KEXIM issued a RG for the order of five crude oil tankers by a Greek shipping 
company accepted by Sungdong in July 2017. 
e) All Korean measures providing RGs to DSME, including, but not limited to, the following: 
i. KDB's, KEXIM's, and K-Sure's agreement, pursuant to DSME's 2015 restructuring, 
to provide prepayment RGs for orders placed with DSME; and 
ii. KDB's July 21, 2015 approval of a RG relating  to the prepayment of a container ship 
to be produced by DSME on an order by Maersk; 
f) All Korean measures providing guarantees for loans provided to any shipping company 
placing an export order with Korean shipbuilders,  including, but not limited to, the following: 
i. K-Sure's provision of a guarantee for the loans provided to the shipping company 
placing an export order with Hanjin Heavy Industries. 
g) Any other Korean measures providing RGs and other guarantees/insurance on payments 
and/or financing in connection with commercial vessel orders placed with Korean 
shipbuilders. 
3. Pre-Shipment Loans, Measures through the New Shipbuilding Program, and Other 
Financing for Commercial Vessel Orders  Placed with Korean Shipbuilders 
 
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 pre-
shipment loans and other sales-specific financing on non-commercial terms provided to Korean 
shipbuilders or their customers. This financing includes: (1) provision of loans to finance production, or customers' purchases, of commercial vessels pr oduced 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 commercial 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 and 
the Five-Year Marine Transportation Industry Re building Plan (2018-2022), Korea is developing and 
executing a plan to support shipbuilders and shippi ng 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 ensure liquidity for shi pping companies, through means that include the 
provision of financing. 
 WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
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  These measures include, but are not limited to, the following: 
a) All Korean measures providing Export Implem entation 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 of commercial vessels at below-market rates pursuant to the New Shipbuilding Program, including, but not limited to, the 
following: 
i. Korea Ocean Business Corporation, Korea Asset Management Corporation ("KAMCO"), 
K-Sure, KDB, and KEXIM's provision of loans and other financing totalling approximately 2.95 trillion 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 Hyundai Heavy Industries. 
ii. KDB, KEXIM, KAMCO, KDB Capital, 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 Hyundai Heavy Industries in 
2016 through the New Shipbuilding Program. 
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 purchase 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 financ ing 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 Korean 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 financia l assistance to shipbuilders or shipping 
companies through the provision of preferential loans, purchase of bonds, capital injections, 
the purchase of commercial vessels 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 pr oviding 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 aged ship with an "eco-ship" or highly energy-efficient ship. Pursuant 
to the Development Strategy for the Shipbuilding Industry and the Five-Year Marine Transportation WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
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  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 Gove rnment 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 aged ship. In addition, Korea directly and/or through public and private 
institutions owned, controlled, 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-
shipment measures. 
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, including, but 
not limited to: 
i. Korea's provision of funding for Sinokor Merchant Marine's purchase of a new 
1,800TEU container carrier (Bangkok Max) from Hyundai Mipo Dockyard. 
b) Any other Korean measures providing 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 produced by Korean shipbuilders.  As detailed in policy 
documents, such as the Development Strategy for th e Shipbuilding Industry and the Five-Year Marine 
Transportation Industry Rebuilding Plan (2018-2022),  Korea is developing and executing a plan to 
support shipbuilders and shipping companies, includ ing by directly purchasing, or facilitating 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 transportation 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 shipbuilders, including, but not 
limited to, the following: 
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; Other Measures 
 
This request for consultations extends to any amendments, revisions, implementation, or related measures to the measures 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, directly or indirectly , confers a benefit to Korean shipbuilders and/or 
lessors, lessees, owners and/or operators of commer cial vessels produced by Korean shipbuilders. 
7. Legal Basis 
 Japan is concerned that the measures described in Sections 1 through 6 above are inconsistent with 
Korea's obligations under various provisions of the SCM Agreement . In particular, these measures 
appear to be subsidies causing adverse effects to Japan's interests as provided in: WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
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  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 undercutting , 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 Agreement . 
Japan is further concerned that measures described in Sections 3 through 6 above appear to be 
contingent upon the use of domestic over imported goods inconsistent with Articles 3.1 (b) and 3.2 
of the SCM Agreement , and also appear to fail to 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 . 
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 pr oduce 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. 
Japan looks forward to receiving a reply from Korea to this request for consultations and to 
find a mutually convenient date for consultations.  WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
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ANNEX 
 
Statement of Available Evidence 
 
Japan's request for consultations dated 6 November 2018 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 prejudice caused to the interest of Japan. Japan re serves the right to supplement or alter this list in 
the future, as required. Certain evidence may be indi cative of the existence and nature of more than 
one type of subsidy or measure. However, for simplicity, all sources of evidence are only listed once. 
The evidence presently available to Japan includes the following: General 
 
• For All the Relevant Ministries and Government Agencies, Ministry of Strategy and Finance, 
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 Strategy 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&fil
eSn=3 . 
• For All the Relevant Ministries and Government Agencies, Ministry of Strategy and Finance, 
Plans to Enhance the Competitiven ess of the Shipbuilding Industry (Oct. 31, 2016), 
http://www.moef.go.kr/com/synap/synapView.do?atchFileId=ATCH_000000000003180&fil
eSn=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, 2016), 
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 . 
• IHS Markit,  https://maritime.ihs.com/ . 
• Clarksons Research, https://sin.clarksons.net/ . 
 
Corporate Restructuring Measures to Support Korean Shipbuilders 
 
• Industrial Finance Division, Financial Services Commission, Korea Development Bank Act, 
Act No.14122 (Sept. 30, 2016), Ch. 3, Art. 18.5, http://www.law.go.kr/lsInfoP.do?lsiSeq =182121&lsId=001548&chrClsCd=010202&urlMode
=engLsInfoR&viewCls=engLsInfoR&efY d=&vSct=%EC%82%B0%EC%97%85%EC%9D%8
0%ED%96%89#0000 . 
• International Economic Affairs Bureau, Ministry of Strategy and Finance, Export-Import 
Bank of Korea Act, Act No.14100 (June 30, 2016), Ch. 3, Art. 18.5, 
http://www.law.go.kr/engLsSc.do?tabMenuId=tab45&query=%ED%95%9C%EA%B5%AD
%EC%88%98%EC%B6%9C%EC%9E%85%EC%9D%80%ED%96%89%EB%B2%95# . 
• Export and Import Division, Ministry of Trad e, Industry and Energy, Trade Insurance Act, 
Act No.14667 (Sept. 22, 2017), http://www.law.go.kr/lsInfoP.do?lsiSeq= 192507&lsId=001465&chrClsCd=&urlMode=engLs
InfoR&viewCls=engLsInfoR&efYd=&vSc t=%EB%AC%B4%EC%97%AD%EB%B3%B4%ED
%97%98%EB%B2%95 . 
• Shipping Policy Division, Ministry of Oceans and Fisheries, Korea Ocean Business 
Corporation Act, Act No. 15359 (July 1, 2018),  
http://www.law.go.kr/lsEfInfoP.do?lsiSeq=201185# . 
• Korea Investors Service,  KDB's provision of 2.1 trillion won, and KEXIM's commitment of 
1.6 trillion won in the form of additional short- and long-term loans (Dec 27, 2016),  link is 
not available, but accessible by searching “ 대우조선해양㈜  자본확충에도  신용등급  하향검토  
유지” at http://www.kisrating.com/search.do . WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
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  • Korea Trade Insurance Corporation, Articles of Incorporation of Korea Trade Insurance 
Corporation (Jan. 1, 2015),  
https://www.ksure.or.kr/english/jsp/about/Articles%20of%20association.pdf . 
• DSME, Correction Notification (Report) (Oct. 19, 2017), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20171019000325 . 
• Yeol-Jung Kim, DSME, Half-Year Report  (Aug. 16, 2016), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20160816001183 . 
• KDB, KDB, Main Creditor Bank's Countermeasure related to DSME  (July 21, 2015), link is 
not available, but accessible by searching “ 産銀, 대우조선해양 (주) 관련 주채권은행  대응방안 ” 
at https://wbiz.kdb.co.kr/wb/simpleJsp.do# . 
• 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 . 
• Yeol-Jung Kim, DSME, Main Matter Report / Mandatory Exchange Report  (Dec. 22, 2015), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20151222000132 . 
• 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, Main Matter Report / Mandatory Exchange Report  (Nov. 10, 2016),  
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20161110000227 . 
• Yeol-Jung Kim, DSME, Main Matter Report / Mandatory Exchange Report  (Dec 12, 2016), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20161212000458 . 
• DSME, Correction Notification (Report) (June 28, 2017), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20170628000198 . 
• Yeol-Jung Kim, DSME, Securities Issuance Performance Report  (June 28, 2017),  
https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170628000184 . 
• DSME, Correction Notification (Report) (Aug. 11, 2017), 
https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170811000870 . 
• KOREA INVESTORS SERVICE,  KDB's and KEXIM's commitment in 2017 to provide 1.45 
trillion won of additional loans (Mar. 24, 2017),  link is not available, but accessible by 
searching “ 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 . 
• Daehan Shipbuilding Co., Ltd, Changes in Largest Shareholder and Others' shareholdings  
(Jan. 17, 2017), http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20170117000302 . 
• KEXIM, Large Shareholdings Status Report  (July 5, 2017), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20170705000289 . 
• KDB, Large Shareholdings Status Report  (Aug. 12, 2017), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20170818000019 . 
• Yeol-Jung Kim, DSME, Main Matter Report / Mandatory Exchange Report  (June 28, 2017), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20170628000199 . 
• DSME, Investment Manual (Dec. 28, 2016), 
https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20161228000006 . 
• 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.
HTML . 
• Industrial Finance Division, Financial Services Commission, Plans Executed 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_vi ew.jsp?menu=7210100&bbsid=BBS0030&no=2931
9. 
• KEXIM, Hub of Marine Financing, Marine Finance Center Opens  (Nov. 10, 2014), 
https://www.koreaexim.go.kr/site/program/ board/basicboard/view?currentpage=32&menu
id=001005005001&pagesize=10&bo ardtypeid=36&boardid=50426 . 
• SamKyeong Accounting Corporation, Audit Report for SungDong's Financial Reports  (Mar. 
20, 2018), http://dart.fss.or.kr/dsaf001 /main.do?rcpNo=20180412000689 . 
• Shin-Yeong Park, Ji-Eun Jung, Pouring 4 Trillion and… SungDong Ultimately into Court 
Receivership , HanKyung (Mar. 9, 2018), 
http://news.hankyung.com/article/2018030877501 .  WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
- 9 - 
 
  • Young-Mok Park, STX, Business Report  (Mar. 29, 2018), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20180329000183 . 
• Tae-Sub Byun, Shifting Responsibilities to Governme nt After Providing Blood… SungDong 
and STX Became Textbook Examples of Restructuring Failures , Hankookilbo (Mar. 8, 
2018), http://hankookilbo.com/v/f 972171924af46d4b527cf6f2f252dc4 . 
• Ji-Hoon Moon, STX, Applying for Court Receivership… Court, Will Decide on Restructuring 
After Assessing Ability to Rehabilitate , Global Views (May 27, 2016), 
http://www.ajunews.com/view/20160527215316018 . 
• DongMyung Accounting Firm, Audit Report on DHSC's Financial Reports  (Mar. 2, 2018), 
http://dart.fss.or.kr/dsaf001/ main.do?rcpNo=20180323000922 . 
 
Guarantees and Other Insurance for Financ ing Related to Commercial Vessel Orders 
Placed with Korean Shipbuilders 
 
• For All the Relevant Ministries and Government Agencies, Ministry of Strategy and Finance, 
Measures to Encourage RG Issuance for Orders Accepted by Small-and-Medium-Sized Shipbuilding Companies (Aug. 24, 2017), 
https://www.fsc.go.kr/downManager?bbsid=BBS0030&no=119211 . 
• K-SURE, Medium and Long-term Export Credit Insurance (Buyer Credit) , 
https://www.ksure.or.kr/en/product/product_02_03.do  (last visited July 30, 2018). 
• K-SURE, Export Bond Insurance , https://www.ksure.or.kr/en/product/product_02_09.do  
(last visited July 30, 2018). 
• K-SURE, Export Base Insurance , https://www.ksure.or.kr/insur/export_baseins01.do  (last 
visited Aug. 7, 2018). 
• MFC, Korea Trade Insurance Corporation Introduction of Marine Finance Business , 
http://www.mfcenter.or.kr/kor/support/ksure_info.php  (last visited Oct. 24, 2018). 
• Industrial Finance Division, Financial Services Commission, Credit Guarantee Fund Act, Act 
No.14839 (July 26, 2017), Ch. I, Art. 3, 
http://elaw.klri.re.kr/kor_service/lawView.do?hseq=44431&lang=ENG . 
• JoongAng Ilbo, Prime Minister of South Korea Stated, “We must finish the investigation of 
Daewoo Shipbuilding in as short a period as possible”  (July 5, 2016), 
http://japanese.joins.com/article/879/217879.html .  
• 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 . 
• K-Sure,  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 . 
• K-Sure, 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 . 
• K-Sure, 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 . 
• 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.
HTML?input=1195m . 
 
Pre-Shipment Loans, Measures through the New Shipbuilding Program, and Other 
Financing Provided for Commercial Vessel Or ders 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, KEXIM: Domestic Shipyard Support Systems , 
http://www.mfcenter.or.kr/kor/support/exim01_1.php  (last visited Aug. 2, 2018). 
• KEXIM, Press Releases,  The First Marine Financial Center Opened in Busan Last Month 
(Oct. 16, 2014), 
https://www.koreaexim.go.kr/site/program/ board/basicboard/view?boardtext2=&menuid=
001005005001&searchselect=all&search word=%EC%98%A4%EC%85%98%EB%B2%8C
%ED%81%AC&pagesize=10&boardtypeid=36&boardid=50415 . WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
- 10 - 
 
  • 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  (last visited Aug. 2, 2018).  
• MFC, KEXIM, Export Performance Financing (Formerly Manufacture Financing and 
Cooperation Financing) , http://www.mfcenter.or.kr/kor/support/exim01_2.php  (last visited 
Aug. 7, 2018). 
• 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=MOSFBBS_000000000
028&searchNttId1=MOSF_000000000008280&menuNo=4010100 . 
• Korea Development Bank, 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 . 
• DK Kim, 18 Shipbuilders, 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.
HTML . 
• Da-Hee Gwon, 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.
HTML . 
• MFC, Korea Development Bank: the Financial Engine  of Korea's Development, Global KDB, 
Corporate Financing , http://www.mfcenter.or.kr/kor/support/kdb01.php  (last visited Aug. 
9, 2018). 
• 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 (Sept. 30, 2018), 
https://news.naver.com/main/read.nhn?mo de=LSD&mid=sec&sid1=101&oid=366&aid=00
00416419 . 
• Hwang Jun-Ik, Polaris Shipping, VLOC Financing Acquired Through the New Ship Building 
Program,  EBN Industry News (July 30, 2018), http://www.ebn.co.kr/news/view/950312 . 
• KEXIM, 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=
001005005001&searchselect=all&search word=%EC%BB%A8%ED%85%8C%EC%9D%B4
%EB%84%88%EC%BA%90%EB%A6%AC%EC% 96%B4%EC%8A%A4&pagesize=10&boar
dtypeid=36&boardid=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/20180604/90404356/1 . 
• 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 
visited Oct. 29, 2018). 
• 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 Orders for LPG Ships , Kookje News (Dec. 24, 2014 8:26 PM), 
http://www.kookje.co.kr/news2011/asp/newsbody.asp?code=0200&key=20141225.22014
201507 . 
 WT/DS571/1 • G/L/1279 • G/SCM/D121/1 
 
- 11 - 
 
  Eco-Ship Replacement 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.d o?articleKey=23257&boardKey=10&menuKey=
376&currentPageNo=1 . 
• Ministry of Oceans and Fisheries,  2019 Eco-Friendly Facilities Improvement Second 
Maintenance Business  (Oct. 5, 2018), 
https://www.kobc.or.kr/kor/CMS/Board/Bo ard.do?mCode=MN052&mode=view&mgr_seq=
10&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/938859 . 
• 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 through next year , 
ChosunBiz.com (Apr. 5, 2018), 
http://biz.chosun.com/site/data/html_dir/2018/04/05/2018040501885.html . 
 
Other Korea's Support for Commercial Vessel Purchases 
 
• Regional Industrial Division, Minist ry 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.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=158663&bbs
_cd_n=81&currentPage=1&search_key_n=&s earch_val_v=&cate_n=&dept_v=&from_brf=
brf&brf_code_v=3 . 
• Korea Ocean Business Corporation launched to support Korea's shipping industry , 
Safety4Seas (Apr. 7, 2018), https://safety4sea.com/korea-ocean-business-corporation-
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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