BOOKMARK
  • Korean|
  • Chinese|
  • Japanese|
  • Vietnamese
본문내용 바로가기

Aju Business Daily

SEARCH
  • ECONOMY
  • ENTERTAINMENT
  • IT
  • South Korea
  • North Korea
  • WORLD
  • SPORTS
  • LIFESTYLE
  • AUTO MOTIVE
  • OPINION
  • PEOPLE
  • MILITARY
Home > Industry > article

Shipping industry receives short-term liquidity to overcome financial woes

Lim Chang-won Reporter(cwlim34@ajunews.com) | Posted : April 23, 2020, 13:02 | Updated : April 23, 2020, 13:02
  • 트위터
  • 페이스북
  • 웨이보

[Courtesy of Korea Line]


SEOUL -- South Korea will inject 1.25 trillion won ($1.01 billion) into its shipping industry for short-term liquidy support. The lion's share of up to 470 billion will go to HMM, the country's biggest shipper, which should repay maturing ship financing.

The injection of liquidity is separate from a government relief package worth 40 trillion won unveiled the previous day to rescue South Korea's troubled key industries, the Ministry of Oceans and Fisheries said on Thursday. "We hope the measures will preemptively provide liquidity to shipping companies to minimize the damage," Minister Moon Seong-hyeok said.

HMM, formerly known as Hyundai Merchant Marine, has been managed by the state-run Korea Development Bank (KDB) and the Korea Maritime Promotion Agency to minimize damage from a pandemic on the premise of corporate management innovation and self-rescue efforts.

"Considering the characteristics of the shipping industry, which has a time difference between the worsening global economy and falling sales, the damage is expected to increase after the second quarter," Moon said. This yea's global container fares are forecast to fall six percent on-year, requiring preemptive liquidity support as the market outlook is worsening due to a pandemic.

The Korea Maritime Promotion Corporation, a government-backed organization set up to support the recovery of South Korea's shipping industry, will support the issuance of corporate bonds to secure up to 260 billion won in bonds issued by shipping companies. For small and medium-sized shipping companies, the agency will provide 100 billion won by directly purchasing corporate bonds while providing funds for mergers and acquisitions.

HMM has tried to enhance its international competitiveness and profitability since Hanjin Shipping, which used to be South Korea's largest container carrier, terminated its 40-year-long business in February 2017, when South Korean shippers were in trouble due to falling freight rates and a protracted slump in the global economy.

As part of a government scheme to rehabilitate the domestic shipbuilding industry, HMM has signed contracts with three top shipbuilders to acquire 20 giant eco-friendly container ships by 2020.

  • Lim Chang-won Reporter
  • email : cwlim34@ajunews.com
© Aju Business Daily & www.ajunews.com Copyright: All materials on this site may not be reproduced, distributed, transmitted, displayed, published or broadcast without the authorization from the Aju News Corporation.
  • twitter
  • facebook
  • weibo
  • link copy
  • LIST
  • TOP

Related news

  • .Doosan Fuel Cell partners with shipping company Navig8 to demonstrate fuel cell-powered ship.
    Doosan Fuel Cell partners with shipping company Navig8 to de…
  • .Samsung shipyard wins new LNG carrier order from unspecified Oceania client.
    Samsung shipyard wins new LNG carrier order from unspecified…
  • .Samsung shipyard embarks on designing technology for floating offshore wind turbine floater.
    Samsung shipyard embarks on designing technology for floatin…
  • .Hyundai Motor works with domestic partner to develop fuel cell power generation system .
    Hyundai Motor works with domestic partner to develop fuel ce…
  • .Hyundais fuel cell system to be used for Ineos rugged off-road utility vehicle.
    Hyundai's fuel cell system to be used for Ineos rugged off-r…

Real Time Photo News

  • .NCSofts global K-pop fan community platform to service original content including songs.

    NCSoft's global K-pop fan community platform to service original content including songs

  • .Singer IU drops teaser image for upcoming full album.

    Singer IU drops teaser image for upcoming full album

  • .Cube Entertainment partners with web comics company to create online video content.

    Cube Entertainment partners with web comics company to create online video content

  • .Sci-fi film starring Song Joong-ki to be reelased on Netflix in February.

    Sci-fi film starring Song Joong-ki to be reelased on Netflix in February

  • .Actor Kim Soo-hyun to star in S. Korean remake of British TV drama series Criminal Justice.

    Actor Kim Soo-hyun to star in S. Korean remake of British TV drama series 'Criminal Justice'

Latest News

more+

  • Hyundai auto group makes strategic investment in Israeli startup UVeye
  • Moon visits announces potential deal with Novavax for 20 mln people: Yonhap
  • Hyundai shipyard lifts 9,100-ton topside of deep-water offshore plant
  • NCSoft's global K-pop fan community platform to service original content including songs
  • Daewoo shipyard jumps into development of offshore substations for wind farms
Aju Business Daily
  • ABOUT US
  • CONTACT US
  • PRIVACY STATEMENT
  • Copyright Policy

Address : Aju News Corporation LEEMA Building, 11th floor, 42, Jong-ro 1-gil, Jongno-gu, Seoul.    Mail : swatchsjp@ajunews.com

Copyright ⓒ 2016 By Ajunews Corporation, All Rights Reserved.

Mobile view