Japan’s Tackle

The Japanese government expressed its opposition to the South Korean government’s supply of 4.2 trillion won to Daewoo Shipbuilding & Marine Engineering in October last year.
The Japanese government expressed its opposition to the South Korean government’s supply of 4.2 trillion won to Daewoo Shipbuilding & Marine Engineering in October last year.

 

It has been found that the Japanese government called into question the South Korean government’s support for Daewoo Shipbuilding & Marine Engineering (DSME) via state-run banks in a recent international conference.

According to the Ministry of Trade, Industry & Energy of South Korea, the Japanese government presented a written opinion immediately before the 122nd OECD WP6 meeting that took place from May 23 to 24, claiming that any public support should be in compliance with the purpose of market function enhancement.

In doing so, the Japanese government expressed its opposition to the South Korean government’s supply of 4.2 trillion won to DSME in October last year, which was provided via the Korea Development Bank and the Export-Import Bank of Korea, stating that it constituted market distortion. It is said that, after the presentation of the opinion, the Japanese government listened to the South Korean government’s explanation and proposed in response to discuss the issue at the subsequent meeting in view of its significance in terms of transparency instead of making any inquiry at that site.

At the meeting, the chairman of the OECD Council Working Party on Shipbuilding proposed to look into the progress of shipbuilding sector restructuring in the EU, Japan and the like at the next meeting scheduled for December this year, adding that it is not an issue limited to South Korea. Members of the working party agreed to it.

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