Korea Ocean Business Corporation (KOTC), South Korea’s state-sponsored ship finance unit, will allocate a first round of around KRW26.8bn ($251m) subsidy to support the fleet renewal of domestic owners.
The six shipping companies qualified for the first round of the subsidies are Hyundai Merchant Marine (HMM), Sinokor Merchant Marine, CK Line, Namsung Shipping, Pan Continental Shipping, and Dongjin Shipping, and they will be granted subsidies only after they scrapped older vessels and order eco-friendly newbuildings.
Each owner will get up to KRW5bn for each demolition/newbuilding combination. The subsidy will fund around 10% of the newbuilding price.
This week, HMM has announced a plan to order 20 mega containerships at three domestic yards.