Korean shipbuilders are set to take a share of a new state funding programme worth KRW 15 trillion ($13.29bn) over the next three years.
Korea Development Bank (KDB) and Industrial Bank of Korea (IBK) will inject the cash to make key industries more competitive, according to the Financial Services Commission (FSC).
The two banks will provide KRW 6 trillion this year, of which KRW 4 trillion will go to yards and car manufacturers.
The money will be invested in stocks and bonds, or as loans.
Interests rates will be between 0.5% and 0.7%.
Japan has already complained to the World Trade Organisation (WTO) that South Korean state-backed financial institutions’ support for the domestic shipbuilding industry is in breach of international agreements on subsidies.
