According to the Ministry of Land, Transport and Maritime Affairs and the Financial Services Commission (FSC), the government will approve the launch of the fund during a meeting on Thursday to enhance the nation's shipping industry.

The government, with the money from the fund, plans to purchase ships from struggling local shipping companies, which would otherwise have to sell those assets at excessively cheap prices to foreign investors.

The state-run debt clearer Korea Asset Management Corp., credit banks and private investors will participate in setting up the fund, according to the ministry.

The move comes as local owners have been hard struck by the global financial crisis and the slumping economy, with some also struggling with a liquidity squeeze.

So far three Korean lines have gone to the wall since the start of the global financial crisis with certain other big names also warding off bankruptcy.

Share

Tweet

• Hyundai Heavy Industries signs 18,400 teu very large containerships. - 2013-05-06 - 07:01:13
• ClassNK Maritime Labour Convention Certification - 2013-05-03 - 08:11:41
• Precious BC resale gains profit - 2013-05-02 - 08:14:26
• Scorpio Eco-ships Excel - 2013-05-02 - 08:03:35
• Compania Sud Americana de Vapores raise funds for 9,300TEUs - 2013-05-02 - 07:51:14
• Boxship Scrapping Spree - 2013-04-29 - 04:35:47
• Navios-Nordbank buy 10 ships - 2013-04-23 - 06:56:58
• KSS Line books VLGC newbuild - 2013-04-22 - 08:41:45
• LNG carriers rates into five digits - 2013-04-22 - 08:37:10
• Sovcomflot predicts upturn - 2013-04-16 - 02:36:01

• < Prev
• Next >