earticle

영어

Shipbuilding industry has been one of the most significant heavy industries in Korea. Under export-centered economy, furthermore, shipbuilding industry has been dominant position for a long time in Korea. In addition, shipbuilding industry is closely related to ship finance. A ship has been legally considered as a kind of real estate. The reason is that a ship is a valuable asset. Therefore, a ship is regarded as useful target of finance. A shipbuilder as a seller makes a shipbuilding contract with a shipping company as a buyer. In shipbuilding process, the shipbuilder may face various risks. The shipbuilder may by accident or unexpectedly experience loss or damage of a ship. Likewise, an insurance company covers the risks of the shipbuilder. Generally speaking, Institute Clauses for Builders' Risks have been widely used in the world. In Korea, the insurance company has used the Institute Clauses for Builders' Risks until now. However, under the domestic insurance market it is necessary to make new clauses in respect of shipbuilding as a substitute of the Institute Clauses for Builders' Risks. The reason is that the domestic shipbuilding insurance market may enlarge in the future according to the growth of the shipbuilding industry. Therefore, new clauses for builders' risks are proposed in this paper.