IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 02 Apr 2014 | Removal date: open ended
Still in force

Trade finance

On 2 April 2014 the Export-Import Bank (Eximbank) of Korea provided USD 300 million (USD 175 million as a direct loan and USD 125 million in ship bond guarantees) in ship financing to Amercian Scorpio Tankers Inc. Through the agreement a total of 18 vessels will be ordered from Korean shipbuilders namely Hyundai Mipo Dockyard (10), Samho Heavy Industries (6), and Daewoo Shipbuilding & Marine Engineering (2).
 
In this context the Bank stated in a press release: 'The purpose of this financial agreement is for Korea Eximbank to finance Scorpio Tankers' purchase of product tanker vessels from three Korean shipbuilders including Hyundai Mipo Dockyard.' And added: 'A ship bond guarantee is an instrument by which Korea Eximbank guarantees the bond issued by a foreign ship-owners to finance its purchase of Korean-made vessels.'
 
Ship financing
The Eximbank of Korea operates with various financial instruments to promote its maritime sector. Loans and ship bond guarantees are provided to foreign buyers when financing their purchase of specific Korean maritime goods. More information on the Bank's financial instruments can be found on the official website or the "Guide to the Import-Export Bank of Korea" publication.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

493 Ships
8901 Cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the transport of persons or goods.
890110 Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferryboats of all kinds
890120 Tankers
890190 Other vessels for the transport of goods and other vessels for the transport of both persons and goods

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