Shipowners Association Urges National Assembly's Political Affairs Committee for Prompt Passage of San-eun Act Amendment Bill

[Asia Economy Reporter Yoo Je-hoon] The Korea Shipowners' Association announced on the 25th that it has urged the National Assembly's Committee on Economy and Finance to promptly process the partial amendment bill of the Korea Development Bank Act to ensure timely policy support for the shipping industry struggling due to the impact of the novel coronavirus infection (COVID-19).

Earlier, at the 5th Emergency Economic Measures Meeting held on the 22nd, the government established the 'Period Industry Stabilization Fund' and selected seven industries, including the shipping industry, that have a significant impact on the national economy, employment stability, and national security as period industries to receive support from the fund. To this end, the government prepared an amendment bill to the Korea Development Bank Act, which includes provisions on the establishment and funding of the fund, management, operation and accounting, procedures and requirements for financial support, and the establishment of the Fund Operation Deliberation Committee, and submitted it to the National Assembly.

In the letter of recommendation sent to the Committee on Economy and Finance, the Shipowners' Association stated, "The shipping industry is the most sensitive industry to the global economy," adding, "The current downturn in the global economy leads to a sharp decline of over 10% in maritime cargo trade volume, which results in a sales decrease effect of more than 20%, ultimately leading to a crisis for shipping companies." They further requested, "Please actively consider ensuring that fund support is provided as soon as possible."

Kim Young-moo, the full-time vice chairman of the Shipowners' Association, also visited the National Assembly's Committee on Economy and Finance office and appealed, "As we keenly felt during the 2008 global financial crisis, the shipping industry is an industry that urgently requires proactive government support measures. If a situation like the bankruptcy of Hanjin Shipping occurs again, the adverse effects will spread uncontrollably across all industries of our economy, which heavily depends on exports and imports."

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