Newly launched ocean biz corp. to offer support to 10 shipping companies

SEOUL, July 29 (Yonhap) -- The newly launched Korea Ocean Business Corporation said Sunday that it will offer support to 10 small and medium shipping lines as part of its effort to revive the country's maritime transportation sector.

The state-run corporation, under the Ministry of Oceans and Fisheries, selected the shipping lines as its primary negotiation partner with so-called sale and lease back (S&LB) assistance to be provided.

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 companies have been notified of the decision, with the purchase to be completed by November," the public corporation said.

It said a survey carried out on local shipping lines showed 19 companies wanting to sell 56 vessels under the S&LB arrangement.

Besides buying ships, the oceans corporation, launched on July 4 with initial capital of 3.1 trillion won, plans to expand investments into terminals, ship-related financing and supporting the building of eco-friendly vessels going forward.

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