On Sunday, the newly launched Korea Ocean Business Corporation announced support for 10 small to medium shipping lines to help revive the nation's maritime sector.
Yonhap News reports that the state-run corporation will provide sale and lease back assistance for 10 vessels, a move designed to give the companies fresh funds without business disruption. The support will exceed $66 million, and the recipients include Daebo International Shipping, Dong-A Tanker and DM Shipping.
The financing is expected to be completed by November.
The Corporation, launched on July 4, also has investments planned for terminals, ship financing and the construction of eco-friendly vessels. The South Korean government has funded the Corporation as part of initiatives to revitalize the nation's maritime industry after the collapse of Hanjin Shipping and the decline in shipbuilding business.
South Korea has the world's three biggest shipbuilders by sales: Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering. However, they have been struggling with low orders and rising costs since the 2008 financial crisis. Samsung Heavy Industries and Hyundai Heavy Industries both swung to a net loss during the second quarter of 2018.