Korea to Create $1.2bln Shipping Fund

By Aiswarya Lakshmi
Thursday, December 31, 2015
Photo: Hyundai Heavy Industries

 The South Korean government will create a US$1.2 billion ship investment fund to aid the shipping industry which has been struggling due to decreasing global trade. 

 
A report by South Korea's Yonhap News Agency said the fund will help shippers buy and sell vessels with less financial risk. The fund, aims to "aid the shipping industry which has been struggling due to decreasing global trade".
 
Fund will "help shippers buy and sell vessels with less financial risk as the Korea Trade Insurance Corp. and the Korea Maritime Guarantee Insurance Co. will offer insurance for the process."
 
Local financial companies and state-run policy lenders including the Korea Development Bank will participate in the $1.2 billion fund.
 
Commercial banks will provide 50 percent of the necessary fund in the form of senior bonds while state-run financial institutions including the Korea Development Bank, Export-Import Bank of Korea and Korea Trade Insurance Corporation will contribute 40 percent in the form of subordinated bonds. Shipping companies, meanwhile, will be responsible to cover the remaining 10 percent of the fund. 
 
A contracted slump in global trade weighs heavily on the shipping industry of South Korea, which depends highly on exports. Two big leaders of Hyundai Merchant Marine Co. and Hanjin Shipping Co. have faced strong headwinds of weak demand throughout the year, while Asia’s fourth largest economy suffered an 11-month drop in its outbound shipments.
 
Hyundai Heavy Industries Co., South Korea’s largest shipyard, and its rival Daewoo Shipbuilding & Marine Engineering Co. have reported massive losses so far due to a sharp fall in new orders and increased costs stemming from a protracted procedure in building offshore facilities, triggering a shockwave in the entire industry.
 
“The country’s leading shipping companies have taken various measures to restore their financial health, but the industry conditions have deteriorated more rapidly,” said Kim Yong-beom, secretary general at the Financial Services Commission. 
 
Kim adde: “The government is providing policy support that is necessary to help shipping companies strengthen their competitiveness while they continue to put their own efforts into easing liquidity crunch.” 
 
The government of South Korea also plans to require downsizing and restructuring of its shipyard industry.
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Senate Confirms Three to Serve on Federal Maritime Commission

The U.S. Senate has confirmed the nominations of three individuals to serve as Federal Maritime Commissioners: Rebecca F. Dye, Michael A. Khouri and Daniel B. Maffei.

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Contracts

Norsafe Secures Contract with VARD Group

Norsafe informs it has signed a new contract with VARD Group, and will supply lifeboats complete with davit systems to a series of 15 new vessels.    Topaz Energy

IOMAXIS Awarded $245 Mln Contract to Support NRL

Contract will allow IOMAXIS to provide research, development and technical support to initiatives at the Naval Research Lab   IOMAXIS, provider of technologies

Demand, Bunker Pricing Spurs Asia Dry Bulk-Capesize Rates

Owners asking $1 per tonne more on Australia-China rates; Panamax rates climb to two-month high, but remain under pressure. Freight rates for large capesize

Shipbuilding

Norsafe Secures Contract with VARD Group

Norsafe informs it has signed a new contract with VARD Group, and will supply lifeboats complete with davit systems to a series of 15 new vessels.    Topaz Energy

NASSCO Wins Six Ship U.S. Navy Contract

General Dynamics NASSCO, a subsidiary of General Dynamics (NYSE: GD), won a contract by the U.S. Navy for the detailed design and construction of the next generation of fleet oilers,

Austal Stops Shares Trading

Review of U.S. Ops Reportedly Underway The West Australian reported that Austal halted its shares from trading, and reportedly is in the process of reviewing its U.

Finance

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

Vessels

Fincantieri Delivers Seven Seas Explorer

The first of two ultra luxury cruise ships delivered for Regent Seven Seas Cruises   Seven Seas Explorer, the newest ultra luxury ship of Regent Seven Seas Cruises,

Solstad CSV Gets Propulsion Overhaul at Gibdock

Gibraltar’s Gibdock shipyard has completed its scope of work on Solstad Shipping’s Normand Cutter, a 127-meter-long, 10,979grt construction support vessel (CSV)

Damen Signs MOU with Sydney City Marine

Damen Shipyards Group and Sydney City Marine have signed a Memorandum of Understanding (MOU) outlining the future cooperation of the two companies concerning the

Government Update

Senate Confirms Three to Serve on Federal Maritime Commission

The U.S. Senate has confirmed the nominations of three individuals to serve as Federal Maritime Commissioners: Rebecca F. Dye, Michael A. Khouri and Daniel B. Maffei.

Netherlands Opts for ‘Flexible’ Container Weighing

As of July 1, shippers and freight forwarders are required to verify the weight of a container before the container is loaded onto a ship.   The Netherlands’

US Provides $100 Mln in Port Security Grants

Homeland Security Secretary Jeh Johnson announced final allocations of $275 million for six fiscal year 2016 U.S. Department of Homeland Security (DHS) competitive preparedness grant programs,

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1180 sec (8 req/sec)