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 worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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