• 2024 June 18 14:07

    South Korea bolsters shipbuilding industry with $10.75 billion financial support

    This marks the first time that policy banks and regional banks have jointly participated in issuing RGs for medium-sized shipbuilders

    In a significant move to bolster South Korea's shipbuilding industry, Minister of Trade, Industry and Energy Ahn Duk-geun and Financial Services Commission Chairman Kim Joo-hyun convened a “K-Shipbuilding Export Finance Support Agreement Ceremony” and a “Shipbuilding Companies Meeting” at The Plaza Hotel in Jung-gu, Seoul, on the morning of June 17, BusinessKorea reported.

    The event saw the participation of key figures from the nation's financial and shipbuilding sectors, including the heads of the five major banks—KB Kookmin, Hana, Shinhan, Woori, and NH Nonghyup – as well as three regional banks – Gyeongnam, Gwangju, and Busan. Representatives from four policy financial institutions – KDB Korea Development Bank, IBK Industrial Bank of Korea, Korea Trade Insurance Corporation, and Korea Eximbank – were also present, alongside executives from three shipbuilding companies – HD Hyundai Heavy Industries, Daehan Shipbuilding, and K Shipbuilding.

    The government and 12 financial institutions have committed to providing a total of $10.75 billion (approximately 15 trillion won) in “Refund Guarantees” (RGs) to enhance the competitiveness of domestic shipbuilding orders and expand exports. This initiative is expected to significantly support the construction and export of ships, a critical sector for South Korea's economy.

    According to the agreement, nine banks, including the five major banks, three regional banks, and IBK, will support RGs worth approximately $260 million, with $30 million allocated for each of the nine ships already ordered by medium-sized shipbuilders. The government anticipates that this financial backing will facilitate the smooth construction of these nine ships, valued at $700 million. Typically, shipowners pay 40% of the shipbuilding cost as an advance payment to the shipbuilder, and RGs serve as a guarantee that if the shipbuilder fails to deliver the ship properly, the financial institution will cover the advance payment.

    KDB Korea Development Bank will also issue RGs worth $260 million for ships already ordered by medium-sized shipbuilders and plans to issue an additional $160 million in RGs for future orders. Furthermore, Korea Trade Insurance Corporation will increase the special guarantee ratio for shipowner RGs from 85% to 95%, thereby reducing the banks' guarantee burden from the existing 15% to 5%.

    This marks the first time that policy banks and regional banks have jointly participated in issuing RGs for medium-sized shipbuilders. Through this agreement, a total of $680 million (approximately 1 trillion won) in RGs will be supplied to medium-sized shipbuilders. Notably, the five major banks have resumed issuing RGs to medium-sized shipbuilders for the first time in 11 years, following significant RG losses during the shipbuilding industry downturn. On this day, Shinhan Bank issued the first RG for a crude oil tanker ordered by Daehan Shipbuilding from a Belgian shipowner.

    For large shipbuilders such as HD Hyundai Heavy Industries, Hyundai Samho Heavy Industries, Hyundai Mipo Dockyard, and Samsung Heavy Industries, the five civil major banks, along with state-owned banks like KDB, Eximbank and IBK, have provided a new RG limit of $10.07 billion (14 trillion won). These large shipbuilders have nearly exhausted their existing RG limits due to the recent boom in orders for high-value ships such as LNG carriers.

    Minister Ahn emphasized the collaborative effort between the public and private sectors, stating, "The public and private sectors will work as one team to fully support the entire process from order to construction to export, and we plan to establish a 'K-Shipbuilding Super Gap Technology Roadmap' next month to fend off the pursuit of latecomer competitors."

    This comprehensive financial support is expected to not only stabilize the shipbuilding industry but also enhance its global competitiveness, ensuring that South Korea remains a leading player in the global shipbuilding market. The establishment of the “K-Shipbuilding Super Gap Technology Roadmap” next month aims to further solidify this position by fostering technological advancements and innovation within the industry.




2024 July 20

16:11 First hybrid ship launched at Kanellos Shipyards in Perama
14:21 DOF Group awarded multiple contracts in Brazil
12:18 HD Hyundai Heavy Industries union initiates strike procedures
10:06 Asyad Group looks to buy or operate ports in southeast Asia

2024 July 19

18:00 Global Centre for Maritime Decarbonisation concludes biofuels supply chain trials
17:10 Four Greek ports receive €10 million in CEF funds
16:47 Rauma shipyard launches the second passenger-car ferry ordered for Tasmania
16:25 MOL to invest in Carnot, a developer of technology for highly efficient engines
15:48 ABS and KRISO to advance SMR-powered vessels and floating power generation platforms
15:31 Ports of Indiana, Port of Antwerp-Bruges sign MoU
14:59 Fratelli Cosulich holds a steel cutting ceremony for the new vessel "Marta Cosulich" at Taizhou Maple Leaf Shipbuilding
14:13 Suez Canal reports 23.4% drop in annual revenue due to Red Sea crisis
13:42 Dual fuel standby vessels begin operations in Hong Kong
13:08 Bluferries, C.T.E. Perdikaris Engineering, Architectural & Technical Services and RINA announce the launch of a hybrid Ro-Ro passenger ship
12:30 DP World and Evyap Group forge new logistics hub to boost Turkish trade
12:11 Sempra Infrastructure announces EPC contract with Bechtel for Port Arthur LNG Phase 2
11:40 Two oil tankers on fire off Singapore, crew rescued
11:20 World Bank Group releases report on offshore wind development scenarios for Brazil based on analysis by DNV
10:42 FPSO Bacalhau receives AiP for abate notation from classification society DNV
10:19 Port Houston approved for cold treatment
09:55 Fujairah’s fuel oil inventories rise 5% this month

2024 July 18

18:00 South Korea slaps sanctions on Hong Kong shipping firm
17:31 IBIA seeks change to CII regulation for bunker vessels
17:06 Rem Offshore and VARD sign contract for CSOV
16:31 EU to invest record €7 billion in transport infrastructure
16:02 Port of Antwerp-Bruges throughput up 3% to 143.2 million tonnes in H1 2024
15:47 Port of Rotterdam posts cargo throughput of 220 million tonnes in first half 2024
15:30 Port of Oakland full imports rises 26.8% to 84,040 TEUs in June 2024
14:43 MSC increase own-operated service share
14:13 GTT receives an order from Dalian Shipbuilding for the tank design of two new LNG carriers
13:37 NYK acquires multiple segments of ENEOS Ocean’s shipping business
13:01 Bunker price trends in the world's four largest hubs, July 15-29 – MABUX
12:42 ITOCHU, Nihon Shipyard, ClassNK and MPA, signed MOU for joint study of ammonia fueled bulk carriers
12:12 KENC Engineering awarded with jacket seafastening scope
11:30 CMA CGM enters into a strategic partnership with Google
11:03 Port of Los Angeles container volume increases 10% to 827,757 TEU in June 2024
10:53 The Government of Canada invests in marine industry’s transition to green ship technology
10:13 Scottish Government to purchase seven new ferries
09:19 Damen signs four vessel contract with Toyota Tsusho for Angolan port development project

2024 July 17

18:05 Peninsula completes LNG bunkering for ‘K’ LINE in Gibraltar
17:36 Yangzijiang to invest $412 million in shipyard expansion
17:06 Singapore's non-oil domestic exports down 8.7% in June 2024
16:42 Damen starts steel cutting on new hybrid island class vessels for BC Ferries
16:23 Mabanaft submits permit-related approval documents for planned construction of ammonia import terminal in Hamburg
15:54 Helsinki, Tallinn ports get €15m EU funding
15:24 LNG carrier completes Arctic voyage to China in 18 days
14:45 Salvage team to start pumping fuel from grounded vessel on South African coast
14:23 Fertiglobe wins first H2Global pilot auction for renewable ammonia
13:54 Maersk says Red Sea shipping disruption having global effects
13:39 Average spot rates from the Far East to US East Coast increased by 3.7% - Xeneta
11:30 NYK completes world's first truck-to-ship ammonia bunkering of ammonia-fueled tugboat
10:52 CEVA Logistics, Almajdouie Logistics sign JV in Saudi Arabia 
10:24 Port of Long Beach container volume up up 15.3% to 835,412 TEUs in June 2024

2024 July 16

18:02 China extends visa-free transit policy to 37 ports
17:25 Works on schedule for the Ravenna regasifier, with the plant operational in the first quarter of 2025
17:05 STX Heavy Industries changes name to “HD Hyundai Marine Engine”
16:45 OOCL's revenue rises 14pc to US$2.2bln
16:20 Saltchuk acquires all of the outstanding shares of Overseas Shipholding Group
15:57 EU sets four conditions for the port of Piraeus inverstments
15:41 Serbia to open tender for Prahovo port overhaul in 2024
15:37 EIB lends €90 million for sustainable expansion of the Port of Livorno
15:34 Crew of capsized oil tanker off Oman still missing
15:14 Lomarlabs signs with Cargokite to develop a new ship class of micro ships
14:47 Greece extends naval drills that deter Russian oil transfers - Bloomberg
14:08 The Official Journal of the European Union publishes the first-ever EU regulation to reduce methane emissions
13:24 High cat fines found in the Amsterdam-Rotterdam-Antwerp region bunker fuel samples, alerts CTI-Maritec
12:58 Yangzijiang Shipbuilding works to acquire over 866,671 sqm of land for new clean energy ship manufacturing base
12:42 GTT entrusted by Samsung Heavy Industries with the tank design of a new FLNG
10:47 Maersk signs an MoU for ship recycling in Bahrain

2024 July 15

18:06 European Shipowners and Maritime Transport Unions launch initiative to support shipping and seafarers in the digital transition