Marine Link
Wednesday, November 22, 2017

Korea Mulls New Ship Financing Company

October 31, 2016

Photo: Hanjin Shipping Co Ltd

Photo: Hanjin Shipping Co Ltd

 Reuters report quoting South Korea government sources that the country is planning  to establish a state-backed ship financing company with an initial capital of 1 trillion won ($871.73 million) to help improve the financial health of Korean shipping companies. 

 
The government would provide financing of 6.5 trillion won ($5.67 billion) in total so that local shipping firms could acquire new vessels.
 
New vessel orders won by South Korean shipbuilders between January-September fell by 87 percent compared to the same period in the previous year.
 
The government has announced measures to support struggling local shipbuilding and shipping industries following the collapse of Hanjin Shipping Co Ltd, which applied for court receivership in August. 
 
Daewoo Shipbuilding & Marine Engineering Co Ltd, one of the world’s three largest shipyards, all in South Korea, is currently suffering from a big drop in orders. 
 
The trade ministry said Daewoo’s main creditor, state-backed Korea Development Bank (KDB), would take into consideration any future improvement in Daewoo’s operations and market conditions before potentially pursuing a sale or some other form of merger or acquisition of Daewoo.
 
Maritime Reporter Magazine Cover Nov 2017 - The Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News