Chinese banks are watching for an opportunity to provide ship financing in South Korean shipbuidlers' projects. Seoul branch, Bank of Communications of China is known that it recently has made an inquiry to the Export-Import Bank of Korea about how to provide ship financing for those under construction from Daewoo Shipbuilding & Marine Engineering.
The Chinese bank has examined that if it is able to grant loans to shipowners contracted with Daewoo. Also, the Agricultural Bank of China is reviewing the ship-financing contract with one unrevealed Korean yard.
With a goal to replace the US or European banks hit by global financial crisis, Chinese banks actively work for taking over the Korean market.
Ship, plant, etc., in particular, are one of their major concerns. A Seoul Branch manager of Bank of China said, "We are studying to draw up a plan to participate financing project in well-developed Korean shipbuilding industry."
Market player said, "The Chinese government asks the Chinese banks which already entered in Korean market, to grant more loans to Korean companies."