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Korea Ocean Business Corporation allocates $251m to support domestic lines

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.

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Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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