A Study on the Causes of Deteriorating International Competitiveness of Korean Shipping: with Reference to Cost of Capital

한국해운의 국제경쟁력 저하요인에 관한 연구: 자본비를 중심으로

Capital cost of ships for advanced maritime countries is generally regarded as an international cost, which is, or can be, irrelevant with respect to the nationality of shipowners. However, Korean shipowners have been not only forced by national laws and regulations to build their ships at Korean shipyards, but also restricted to access to foreign financial markets. Having said that, as far as Korean shipowners are concerned, the capital cost has become a national cost. Consequently, it causes them to lower International competitiveness. This paper aims to identify the causes deteriorating international competitiveness of Korean shipping with reference to capital costs and suggest constructive proposals.