Challenges and opportunities for Korea's shipping industry in the era of globalization: The impact of financial crisis from 1998 to 2003

Abstract

The Korean shipping industry, which underwent consolidation of shipping companies in the 1980s, continued to grow with the recovery of the global economy from the late 1980s to the first half of the 1990s. The civilian government that came to power after 30 years of military rule gradually abolished government-led protection and support policies in line with the trend of globalization, culminating in Korea’s accession to the OECD in 1996. However, this globalization policy ultimately resulted in a financial crisis. From 1998–2003, the Korean shipping industry had to struggle to survive amid a national financial crisis. In this paper, the author aims to analyze the impact of the financial crisis on the Korean shipping industry. This will contribute to understanding the underlying causes of the bankruptcy of Hanjin Shipping and Cho Yang Shipping, which were among the top five shipping companies in Korea.