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Korea Report - February, 2016.

During Jan to Feb this year, global yards won around 30 newbuildings. Among them, Korean yards only bagged 3 mid-sized to large tankers, those new orders came in Feb this year. While rival countries also struggled for new orders Korean yards suffered most in order poverty. Japan was in better shape with orders such as one VLCC, one 80K product tanker and two 81.5K bulk carriers in the month of Feb, compared to just one newbuilding in Jan. China’s newbuilding orders during the same period was brighter in Jan, when it had about 10 units including four units of 11,800 teu containers. In Feb, China’s noticeable new orders were 3 reefer containership of 2500 teu class.

Looking at the year start performance of top shipbuilding nations, it seems that this year might be the worst phase of a global slump any yard have ever faced. It would be the game of patience and endurance. It would be no use to rush. The shipbuilders have to prepare themselves with their own survival plan while waiting better days. Survivor will take the future.

The provocations from North could only be considered as ‘a puppy does not stand in awe of the tiger’. SKorea need to implement measures, jointly and unilaterally, that would not only impose real pain on North but push China toward endorsing tougher sanctions. Tight financial restrictions are essential to make North realize it is impossible to further provoke with nuclear bomb and missile. The international communities should understand the THAAD is only available tool to protect the Peninsula from unpredictable outburst by the inexperienced leader, who does not have the eyes to see the world and the ears to listen to the common consensus.

TOPICS.

President Park urged national unity and strong sanctions against NK’s provocations (p.2)

USA deployed additional Patriot missile systems to SKorea to counter NK’s missile threats (p.2)

SKorea will sell old rice in its stock to feed domestic animals (p.4)

Gaeseong industrial park has been closed and relationship between two Koreas is plunging (p.5)

SKorea, USA and Japan bolster 3-way security partnership on unilateral and joint sanctions (p.5)

Ignoring repeated warnings, NK has launched a long-range rocket on Feb 7th (p.6)

SKorea and USA start the talk for the installment of THAAD system (p.7)

UN Security Council adopted a new resolution encompassing strongest sanctions against NK (p.8)

Government will pump additional $17.4 bil of fiscal stimulus into the economy (p.9)

Standard & Poor’s on 3rd decided to maintain Korea’s rating at AA- (p.9)

SKorea and Iran reached an agreement to maintain won-based settlement system (p.9)

Korea is now the world’s sixth-largest exporter (p.10)

Cash reserves held by SKorean companies jumped 13.4% on-year in 2015 (p.12)

Samsung maintained the world largest maker of smart phone as well as TV in 2015 (p.12)

SKorea’s bourse has become the world’s 14th-largest stock exchange (p.15)

KWon plunged to 1,234 against USD on 19th, the weakest since July 2010 (p.16)

This year might be the worst phase of a global slump in shipbuilding ever faced (p.17)

HMD posted operating profit of KW66.573 bil ($55.55 mil) in 2015 (p.19)

Creditors of Hanjin HIC will inject KW250 bil ($208 mil) into the shipyard (p.20)

HMM signed a contract to sell its dry bulk division to H-Line Shipping (p.20)