SEOUL, Sept 28: South Korea is ready to fight any case brought against it by the European Union in the World Trade Organisation after talks failed to settle a bilateral shipping dispute, its commerce ministry said on Saturday.

The EU said on Friday that it would take its case to the WTO after talks in Brussels between the two sides to failed to resolve the dispute.

The EU alleges that South Korea subsidises its shipbuilding industry, the largest in the world, giving it an unfair advantage over competitors. South Korea dismissed the claim, saying its manufacturers are simply more efficient and benefit from a weaker currency.

Given that the (South Korean) government has been prepared in case the EU takes the issue to the WTO, we will actively counter it, the commerce ministry said in a statement.

However, the ministry added that it was still open to further talks with the European Union on the issue.

On the EU demand that South Korea raise the prices of its ships, the ministry said that was too drastic and Korea had suggested gradual increases instead.

It is an unreasonable demand, countering the market mechanism and the free trade principle, it added.—Reuters