South Korea pledges $1bn to support ailing shipping sector
The aid to shipping is part of a government KRW40trn emergency relief package to seven key industries including shipping, so as to cushion the impact of COVID-19.
The KRW1.25trn financing measure was announced on Thursday by Moon Seong-hyeok, minister of the Ministry of Oceans and Fisheries (MOF).
Amongst several measures under the shipping relief package, the Korea Maritime Promotion Corporation (KMPC) will provide KRW100bn in subordinate debt investments. The plan is to expand the collateral loan-to-value ratio up to 95% in order to free up liquidity to shipping companies with existing financing. The current loan-to-value ratio is between 60-80%.
The Korea Development Bank (KDB) and Korea Ocean Business Corp (KOBC) will provide KRW470bn for the repayment of maturing debts of shipowner HMM.
For small to medium-sized shipping firms facing short term liquidity crisis, the KOBC has set aside up to KRW100bn for the purchase of the eligible companies’ corporate bonds.
“When considering the characteristics of the shipping industry, which has a time lag between global economic deterioration and decreased sales, the damage is expected to increase after the second quarter,” Moon said.
Related News.
Cyprus Marine Club Welcomes a Full House for Aphentrica’s War Risks Presentation
The Cyprus Marine Club marked its return after the summer break with a full house at Gazebo Mare on Tuesday, 22 September, bringing together members,…
IMO seeks feedback on Maritime Single Window implementation
The International Maritime Organization (IMO) has launched a global survey to assess the implementation and use of Maritime Single Windows (MSWs),…
World Maritime Day industry panel to examine the gap between maritime policy and the reality of life at sea
OneCare Group will bring together crewing, safety, insurance and wellbeing specialists for a World Maritime Day webinar examining how shipping can…
IUMI President – Marine insurers are war insurers
Marine insurers are at the heart of managing war risks to global shipping and must continue to develop the tools needed to support and facilitate…
Seafarer welfare is improving amongst leading companies, but five years of evidence shows this progress is far from the norm
Five years on, the Seafarers’ Rights Code of Conduct is driving more than 1,000 companies to participate in RightShip’s Crew Welfare…
The UK ETS arrives for shipping what it means for charterers
Introduction The UK Emissions Trading Scheme (UK ETS) was extended to domestic maritime activity on 1 July 2026, following the EU ETS, FuelEU…
ABP Southampton invests locally with Marine Cranes to boost capability
Associated British Ports , the UK’s largest port operator, has invested a new marine deck crane aboard Spartina, one of the Port of Southampton’s…
BIMCO Shipping Number of the Week
Caribbean Basin crude oil and heavy product exports jump 45% “Seaborne exports of crude oil and heavy products from the Caribbean Basin have…
xclusiv S&P Report 21th September 2026
Pls find below the [xclusiv] S&P Report 21th September 2026 [xclusiv] 2026_09_21
Marine insurance supply remains stable as geopolitical and technical changes reshape the market, says IUMI President
The global marine insurance market remains in a stable position, with premium growth strongly supported by a weak USD in hull and cargo. Meanwhile…
Subscribe to our newsletter!
if you dont want to swim alone in the ocean of news, sign up for the newsletter, and you will receive daily all the important news of world shipping!
