EU Mulls Action Against South Korea For Shipbuilding Practices

The European Union is considering taking action against South Korea under the World Trade Organization, accusing the country of using western subsidies to sell ships at below construction cost and putting European rivals out of business. EU industry ministers blamed the Republic of Korea for the difficult situation the shipbuilding sector now faces, citing low prices and overcapacity. The ministers asked industry, national governments and the WTO to seek detailed evidence so that appropriate action may be taken. One minister specifically charged South Korea with a deliberate policy of building up a very strong shipbuilding industry through increased capacity and below-cost prices.