The Korean Government is to increase the Korea Export-Import Bank’s limit on shipbuilding finance by 40% this year in a bid to support struggling shipbuilders .

The Korea Export Insurance Corporation (KEIC) will also support KRW2.1tn ($1.8bn), alleviating conditions of cash payment guarantees.

The government hopes to expand shipbuilding finance by 68.5% from KRW1.84tn ($1.5bn) in 2009 to KRW 3.1tn ($2.6bn) this year, it said.

The limit of total shipbuilding finance will be increased by 40.8% from KRW4.53tn ($3.9bn) in 2009 to KRW 6.38tn ($5.5bn) in 2010, the government said.