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Induced by the deteriorating headwinds in the shipping industry, South Korea is about to establish a corporation that would support the country’s shipping industry.

Named the Korea Maritime Promotion Corporation, the organization is slated for launch in June next year, once the legal framework for its establishment is adopted, Korean Ministry of Maritime Affairs and Fisheries announced.

As informed, the support organization will provide financial and industrial policy support, and will dispose of up to KRW 5 trillion (USD 4.5 billion) worth of capital.

Initially, the capital will be set at KRW 3.1 trillion, which will be increased according to the demands of the shipping industry.

The corporation will build upon the existing maritime financial support programs and provide financial support services for vessels and terminals, purchases of second-hand vessels and re-chartering. In addition, the support body will be engaged in providing information on market conditions to support deals on shipping services, promote projects such as fleet modernization and operate the nation’s essential shipping system to help transport cargoes in emergencies.

The move is in line with the government’s plans to set up a maritime powerhouse intended to support the country’s ailing shipping and shipbuilding branches.

World Maritime News Staff