Representatives of all 15 South Korean liner operators met with the Korea Ocean Business Corporation’s new CEO, Kim Yang-soo, requesting continuing funding to procure boxships, containers and to invest in digitising their operations.
The meeting was intended to discuss ways to strengthen cooperation between KOBC and the liner operators, while exchanging views on the container market situation and prospects.
The shipping executives cited difficulties in securing loans from commercial banks which have pulled back from ship finance after Hanjin Shipping collapsed in 2016. As a consequence of the financial difficulties engulfing the maritime industry, KOBC was set up in 2017 to support the economy by propping up the country’s shipping companies.
Kim, who took office on 23 August, said, “We will actively support South Korea’s liner operators to continue to secure core operating assets such as ships, terminals, and containers to strengthen their global competitiveness, and we will establish a strong support system such as securing funds, credit guarantees, bidding and contract guarantees to help small and medium-sized ships struggling with the long-term effects of Covid-19.”
The shipping executives asked for monetary support in digitising the industry and suggested that ship financing and investment projects tailored to individual companies are needed.
“We expect to have regular meetings with the presidents or working-level staff of local liner operatiors to develop a support framework that actively reflects the opinions of the shipping industry,” said KOBC.
Martina Li
Asia Correspondent
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