The government-backed Korea Ocean Business Corporation (KOBC) is to offer financial support to ten small and medium-sized shipping companies in an effort to help the ailing shipping industry.
The organization selected the shipping companies as partners under sale and lease back (S&LB) projects. This way the companies would receive benefits such as interest rate cuts and extension of maturity through the sale and lease back support.
According to a statement released by South Korea’s Ministry of Oceans and Fisheries, the ten companies would benefit from KRW 74 billion (USD 66.1 million) being used to take over 10 vessels.
The investment is expected to be finalized by November 2018, the Ministry informed.
Based on the 5-year plan for reconstruction of the shipping industry, South Korea reviewed the bases of 36 vessels of 18 companies that applied for a survey on shipbuilding needs in May.
Just last week, the government of South Korea approved a major investment in Korea Ocean Business Corporation. On July 24, the country’s finance ministry said that KRW 1.35 trillion (USD 1.2 billion) in-kind investment would be made into the new company through stock contribution.
Korean Ocean Business Corporation, which was established earlier in July, would focus on supporting the country’s five-year plan for the reconstruction of its depressed shipping industry with the construction of about 200 ships in the next three years.
World Maritime News Staff