1. On June 4th, 2002, the European Commission sent the Korean Government its updated TBR investigation 
report, which claims continued material injury to the EU shipbuilding industry from December 2000 to 
December 2001. This investigation was carried out to update the initial investigation report for the period 
from November 1997 to November 2000, upon the request of the Committee of EU Shipbuilders' Association. 
The initial investigation claimed that European sales of container ships, products and chemical tankers had 
been adversely affected by the illegal subsidization of Korea's shipbuilding industry in the form of export 
credits, debt forgiveness, and debt-to-equity swaps.

 
2. The updated report maintains that the Korean subsidies have continued to cause material injury to the EU 
shipbuilding industry, despite improvements in the market.

 
3. The updated report will be discussed at the upcoming EU industrial ministers' meeting, from June 6 to 7. It 
is expected that the Council will decide on the EU's future measures that may include resorting to the WTO 
dispute settlement system and resumption of subsidies for EU shipbuilders. The Korean Government hopes 
that the Council's decision on this matter is made with prudence.

                                                              Spokesperson of MOFAT

* unofficial translation