Korea Ocean Business Corporation (KOBC), South Korea’s government-backed ship financing entity, has allocated KRW6.15trn ($5.4bn) funding for HMM’s business expansion.
According to local reports, KRW3.15trn of the amount will be used to fund HMM’s recent order of 20 giant boxships at three domestic yards and the remainder will support HMM to acquire container terminal assets.
HMM, South Korea’s flagship carrier, posted the worst results of all the major carriers around the world in the second quarter of this year. Its operating margin for container shipping business declined further to -16.4% during the period.
Since its establishment in July, KOBC has made a series of plans to support local shipping firms, including providing financial support for Sinokor and Heung-A’s merger.