South Korea, the biggest shipbuilding nation, will ease ship fund regulations as it competes with Singapore to become an Asian hub for vessel financing. Funds will be able to own an unlimited number of ships, compared with just one now, and also be able to own oil rigs, the Ministry of Maritime Affairs and Fisheries said in a statement today in Seoul. Under the changes, due to come into effect as early as next month, the maturity of funds will also fall to three years from five years.
The rule change may help the country compete with Singapore, which has introduced a series of incentives in bid to attract shipping funds. A total of 3.42 trillion won (US$3.7 billion) has been raised by South Korean shipping trusts since they were first introduced in January 2004, financing the acquisition of 68 new and second-hand vessels.
"We are hoping the rule revisions will help provide more flexible financing for shipowners and stable means of investment for the general public," the ministry said in the statement.
The rule change may help the country compete with Singapore, which has introduced a series of incentives in bid to attract shipping funds. A total of 3.42 trillion won (US$3.7 billion) has been raised by South Korean shipping trusts since they were first introduced in January 2004, financing the acquisition of 68 new and second-hand vessels.
"We are hoping the rule revisions will help provide more flexible financing for shipowners and stable means of investment for the general public," the ministry said in the statement.