Korean economy has been under an IMF programme since the end of 1997. As a result domestic economic activities have declined sharply with the first half of 1998 GDP growth rate of -5.3%. Maritime Industries in Korea are also under the influence of IMF programme.

 Some positive effects of it are 1) increment of export programme in terms of Korean won with depreciation of domestic currency 2) more flexibility of labor market. 

 On the other hand, major negative effects are :1) financial costs increment with tight monetary market 2) foreign input cost increment 3) generation of exchange rate difference losses on foreign debt. 

On the whole, positive effects and negative effects roughly offset each other in the maritime industry. Major government policy measures to ensure survival and development of maritime industries are 1) to support enterprises restructuring by means of tax cut and legal back-up etc. 2) to enlarge government investment on SOC 3) to induce foreign and private investment on SOC 4) to help shipping companies secure proper capacity of vessels for COA cargo 5) to activate international ship register 6) to enhance labor market flexibility, especially in the port labor sector 7) to extend tax exemption and policy finance for fisheries industry and so on. 

 For the private enterprises the most import thing is to survive in the economic crisis, so such measures as 1) to secure proper cash flow 2) to dispose of unnecessary vessel and other machineries and facilities 3) to reschedule investment plan in the short run. And medium-long term measures are 4) to promote export 5) to improve financial structure 6) to enhance labor flexibility 7) to promote scale economies especially in the port and fisheries industry by way of M&A, capital inducement etc. 8) to make strategic alliances with foreign companies and so on.