The Korea Development Bank (KDB) has made plans to allocate up to USD 1 billion for supporting small and medium-sized shipping companies.The state-run bank said that it will launch the “KDB Ocean Value-up Fund” within this year to sharpen the competitiveness of the local marine industry.
The fund is expected to help firms build new vessels and purchase used ones.
“But the details have not been decided yet as we are discussing them with the Financial Services Commission (FSC),” a KDB official said.
The bank is considering operating the fund through the Maritime Finance Center, which officially opened on Monday, September 29, under the wing of the Busan International Financial Center.
The Maritime Finance Center is operated in collaboration with KDB, Korea Export-Import Bank (Exim Bank) and the Korean Trade Insurance Corp (K-Sure) to provide loans to shipping firms and shipbuilders.
The fund is part of KDB’s reinforced policy financings ahead of a re-merger with the Korea Finance Corp. (KoFC) in January, which was spun off in 2009 as part of the previous government’s drive to privatize public institutions.
Also, KDB will expand its project loans and investments to firms specializing in shipping and maritime plant technology. KDB Financial Group Chairman Hong Ki-taek has taken part in various events in the Busan center since August to boost the maritime and shipbuilding industry.
Since the early 1990s, Korean banks entered into maritime finance and supported local ship owners. KDB has been active in ship financing along with Shinhan Bank.