Another $5 trillion! The South Korean government has stepped up support for its own liner shipping industry
South Korea's government is stepping up support for the country's liner shipping industry amid unprecedented demand.
Park Jun-young, Deputy minister of Marine and Fisheries, announced in a speech on Dec. 9 that the Government will invest 5 trillion won ($4.6 billion) to build 33 container ships by 2025, expanding capacity by 250,000 TEU.
Ocean Circle Focus has learned that HMM has received more than a dozen 24000TEU class container ships this year, and it is expected that in the first half of 2021, another eight 16000TEU container ships will be delivered.
The government became the largest shareholder in HMM through Korea Development Bank, Korea Ocean Business Corporation and The Korea Credit Guarantee Fund, state-backed policy lenders.
KMC will also provide ships to local ship operators on an operational lease to ensure capacity in the event of a sudden increase in cargo volumes.Unlike financial leasing, operating leasing does not require shipowners to purchase the ship at the end of the lease.
By 2025, KMC plans to purchase 50 ships that can be used for operational leases, funded in part by private investors.