South Korea is to provide more cash to support its shipbuilding sector.

The industry ministry said on Wednesday it would spend KRW 70bn ($61m) to support shipyards, according to the Yonhap news agency.

The new money will be earmarked for developing eco-vessels like those powered by LNG.

It follows measures announced in November to create a KRW 1.7 trillion fund to support yards and to invest KRW 2.8 trillion by 2025 to build infrastructure for LNG-fuelled vessels.

The state plans to order 140 LNG-powered ships by 2025.

The ministry also said it would increase the pot for refund guarantees for smaller shipbuilders to KRW 200bn from KRW 100bn.

Korea is already facing strong criticism from Japan over state support for its shipbuilding industry.