Seoul to provide financial support for Sinokor Heung-A merger

Seoul to provide financial support for Sinokor Heung-A merger

South Korea’s Ministry of Oceans and Fisheries has made plans to financially support the merger between two domestic containership operators Sinokor Merchant Marine and Heung-A Shipping.

The two companies entered into agreement in March to merge their container shipping services by next year.

The ministry revealed at a press conference that the newly established state-backed ship financing outfit Korea Ocean Business Corporation (KOBC) will provide financing support by acquiring bonds that will be issued by the merged entity. The proceeds will be used for replenishing working capital.

Additionally, the ministry will subsidise 50% of the port fees for the merged company in the first three years of operation.

Sinokor and Heung-A Shipping control around 100,000 teu in capacity and each alas has non-box related businesses, which will remain separate from the merger.

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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