KOREA – MEASURES AFFECTING TRADE IN COMMERCIAL VESSELS (SECOND COMPLAINT) (JAPAN) REQUEST FOR CONSULTATIONS BY JAPAN
Document: REQUEST FOR CONSULTATIONS BY
Date: 10 February 2020
Document codes: WT/DS594/1; G/SCM/D129/1; G/L/1354
Complainant: Japan
Respondent: South Korea
Dispute stage: Consultation
Agreements cited: Art. I:1, III:4  GATT 1994Art. 1.1, 2, 3.1(a), 3.1(b), 3.2, 5(a), 5(b), 5(c), 6.3(a), 6.3(b), 6.3(c)  Subsidies and Countervailing Measures (SCM)

KOREA – MEASURES AFFECTING TRADE IN COMMERCIAL VESSELS
(SECOND COMPLAINT) (JAPAN)
REQUEST FOR CONSULTATIONS 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 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, 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:
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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 pursuant 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 participate
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 DSME.
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iv. All aspects of support provided to DSME and/or HHI Group 2 pursuant to HHI Group's
acquisition of DSME's shares including, but not limited to, the following:
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. Guarantees 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 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, 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 export 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" includes 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 successor
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.
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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 covering 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, but 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 reimbursed 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 failure 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 2 015 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;
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c. RGs provided by KDB covering prepayment for an order of four crude oil tankers
accepted by STX around 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 prepayment 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 shipbuilders. 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 provided 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
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b. Re-guarantees provided by KODIT based on the RG Issuance Encouraging
Program which was mentioned in the policy 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
Shipbuilding 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 with 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 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 "
(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
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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 Shipbuilding 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 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 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 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 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 Government 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.
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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 of 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 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 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 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 shipb uilders, including, but not
limited to, the following:
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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 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, 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 through 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
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 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 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; 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 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 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.
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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.

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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
prejudice 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, all 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=20191203#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=211691&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.do?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 Bank 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 Relevant 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, 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.
WT/DS594/1 • G/SCM/D129/1 • G/L/1354

• 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 (Report), 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, 2016;
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 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.
• 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 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_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 Matter 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

• 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
Receivership, 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 Restructuring Failures, HANKOOKILBO (Mar. 8,
2018), http://hankookilbo.com/v/f972171924af46d4b527cf6f2f252dc4.
• 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.
• 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/main.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 investigation 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&sid1=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

• 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,
Measures 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&searchNttId1=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, accessible 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
Shipbuilding 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_baseins01.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 Introduction of Marine Finance Business,
http://www.mfcenter.or.kr/kor/support/ksure_info.php.
WT/DS594/1 • G/SCM/D129/1 • G/L/1354

Pre-Shipment Loans, Measures through the New Shipbuilding Program, and Other
Financing Provided for 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/view?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=MOSFBBS_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.phpSeul-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?mode=LSD&mid=sec&sid1=101&oid=366&aid=000
0416419.
• 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 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&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
accessed July 30, 2018; website no longer available from link.).
WT/DS594/1 • G/SCM/D129/1 • G/L/1354

• 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=20141225.220142
01507.

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.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/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 by next year, ChosunBiz.com
(Apr. 5, 2018), http://biz.chosun.com/site/data/html_dir/2018/04/05/2018040501885.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=119987.
• 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 following 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 Fisheries, 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=lsRvsDocInfoR#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.go.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

• 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 Industries
(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-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/.