South Korea’s Hyundai Merchant Marine (HMM) is set to be the first beneficiary of funds from the country’s new Korea Shipping fund, according to Pulse.
The state-backed ship financing firm was announced last October and launched on Tuesday with an initial paid-in capital of KRW1trn ($860m). Over time, the fund will be given KRW6.5trn ($5.6bn) to help local shipping firms buy new vessels.
HMM is set to receive more than KRW600bn ($514.5m) as the government moves to develop HMM as Korea’s flagship line.
A government source which revealed the deal to Pulse, said that the funding is being coordinated after a specific request from HMM.
The report says the fund will provide sale and leaseback deals for HMM as well as buy bonds issued by HMM to improve liquidity.