ANNOUNCEMENT 19 Feb 2014

On 19 February 2014 the Export-Import Bank (ExImBank) of Korea announced increasing the budget of maritime support with 20% equivalent to KRW 600 billion (ca. USD 500 million) in ship financing. The Eximbank of Korea operates with various financial instruments, including direct loans, ship bond guarantees and comprehensive guarantees, to promote its maritime sector. More information on the ship financing can be found on the official website or the "Guide to the Import-Export Bank of Korea" publication.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 2 neutral
  • 0 liberalising

SOURCE



Export-import Bank: Much-Needed Relief Coming to Cash-Strapped Shipping Sector. Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=6&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16967

Guide to the Export-Import Bank of Korean
Available at: https://www.koreaexim.go.kr/site/inc/file/fileDownload?dirname=/doc/002&...
ExImBank official website: https://www.koreaexim.go.kr/site/main/index002


Inception date: No inception date

State loan

The Bank announced plans to provide a total of KRW 20 trillion (ca. USD 1.7 billion) in credit to the ship and offshore sector this year (KRW 14 trillion to the ship sector and KRW 6 trillion to the offshore platform sector), up from last year’s KRW 19.1 trillion. Additional changes will includes raising the loan-to-value ratio applied to used-vessel purchasing loans for SME and medium-large shipping companies from 70% to 80%. The age criteria for used vessels has been relaxed, from vessels aged between 10 to 15 years to those now being between 5 to 15 years.

AFFECTED SECTORS

 
Inception date: No inception date

Loan guarantee

The Bank is seeking to diversify its ship financing tools by introducing the ship bond guarantee, which guarantees project bonds issued by Korean shipping companies to finance vessel purchases.