Seoul, 03/05/2002 (Agence Europe) - In a press release issued on 30 April, the Korean Shipbuilders' Association (KSA) said it was "disappointed" with the European Commission's attitude (see EUROPE of 1 May, p. 10) of blaming South Korea for all the problems faced by EU shipbuilders "without taking account of the facts" as it put it.
According to the KSA, most European shipbuildings have been "unable or unwilling to restructure and modernise as needed to face increased developments in world-wide shipping". The KSA is disappointed that the sector "receives state subsidies as a bonus for lack of cost-reducing innovations. In this regard, the non-subsidised Korean shipyards should be a role model for EU yards rather than a scapegoat". The KSA says the "having left the LNG (liquefied natural gas) market as early as 1994, ie well before the alleged Korean subsidies, and having heavily focused on cruiseships, it is not logical for the European yards to complaint that they did not gain more orders for LNG shiptypes, when they had not anticipated the increase in demand in a market segment where one needs updated know-how and experience in order to be successful". KSA argues that the stabilisation of LNG prices from 1999 to 2001 demonstrates that "contrary to the EU yards' allegations, the Korean success in LNGs is not due to low prices… but to the Korean ability to offer high quality vessels at the appropriate and agreed delivery time. Moreover, the Commission's new LNG investigation even admits that Korean LNG new buildings have been produced at or above costs".