South Korea allocates $693m for domestic owners to modernise fleet

South Korea’s Financial Services Commission has announced that it would allocate KRW820bn ($693m) to help domestic owners to modernise their fleets, South Korean media Yonhap reports

The financial package aims to support smaller shipowners to build 59 new ships in total, comprising of 38 cargo ships and 21 passenger ships.

Under the plan, shipping companies will be reimbursed for up to 60 percent of the cost of the newbuildings and the state-run Korea Ocean Business Corp will guarantee more than 95 percent of the loans.

Additionally, policy bank The Korea Development Bank will also fund 20 percent of the construction cost of the newbuildings.

The move is part of South Korea’s efforts to replace ageing vessels to improve maritime safety.

According to Yonhap, more than 20 percent of passenger vessels and 68 percent of cargo ships in South Korea are over 20 years old.

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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