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South Korean yards struggling to enter new markets

South Korean yards have a hard time breaking through the barrier to new markets such as Iran. State subsidies could be necessary, while a wave of restructurings will probably wash over the industry, write local media.

Photo: Thorbjørn Hansen

For Korean yards, it could be crucial to get a foot in the door of new markets. But this will not be easy, and state aid may be required, writes Korean media Korean Joongang Daily. The yards hoped that Iran could become a new market when the sanctions were lifted. As of now, the Iranian companies have not been able to pay for the first part of any major project, a spokesperson from one of the yards tells the media.

"I heard that even state-run companies like Islamic Republic of Iran Shipping Lines (IRISL) have demanded a large sum of financial support, sometimes up to 95 percent of a ship's price, during recent negotiations with Korean companies."

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