[Photo by Yoo Dae-gil = dbeorlf123@]
South Korea's top financial regulator hinted Monday at the merger of ailing shipping units to increase their competitiveness after they are rehabilitated through a creditor-led restructuring program.
Financial Services Commission chairman Yim Jong-yong said "various options" such as a merger would be considered, though the shipping industry is just at the early stage of restructuring.
"We will give consideration to which way is good for the entire industry -- an industrial merger and a competitive structure -- after restructuring was completed," he told reporters.
Last week, government officials announced the creation of an 11 trillion won (9.4 billion US dollars) fund to help state-run lenders lead the restructuring of shipping and shipbuilding industries.
The fund, which will start operating from July 1 through the end of 2017, is aimed at bolstering capital at state-run policy banks so that they can facilitate corporate restructuring without any significant fall in their capital ratio.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
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