Korea Ocean Business Corporation to Support 10 Shipping Companies

The state-run Korea Ocean Business Corporation (KOBC) said it will offer support to 10 small and medium shipping lines as part of its effort to revive the country's maritime transportation sector.

According to a report in Yonhap, KOBC selected the shipping lines as its primary negotiation partner with so-called sale and lease back (S&LB) assistance to be provided.

 KOBC aims to provide different services to rebuild shipping industry, including management of trade, support for replacement with eco-friendly ships and financial work for shipping terminals.

KOBC which formed under the Ministry of Oceans and Fisheries on July 4 said that S&LB refers to the buying of a ship from a shipping line and then leasing the ships back to the owner. This arrangement can allow companies to receive fresh funds without disrupting normal operations.

Ships owned by such companies as Daebo International Shipping, Dong-A Tanker, DM Shipping and seven others will benefit from the support measure that will involve some 74 billion won (US$66.2 million) being used to take over 10 vessels.

The report quoted the corporation saying that the companies have been notified of the decision, with the purchase to be completed by November.