The Korea Maritime Promotion Corporation (KMPC) has implemented a total of 17.5 trillion won in policy financing since its establishment in 2018. The organization has supported the management normalization of large shipping companies like HMM and the transition to eco-friendly vessels. Recently, it launched the 'Second Special Support Program' worth 1.1 trillion won, expanding its assistance to small and micro shipping companies.
KMPC was established in July 2018 by merging Korea Shipbuilding & Marine Engineering, Korea Maritime Guarantee Insurance, and the Korea Shipping Transaction Information Center to provide policy funds to domestic shipping companies following the bankruptcy of Hanjin Shipping in 2016. As of the end of June this year, KMPC has supported a total of 156 shipping companies, with approximately 17.5 trillion won disbursed. The funds have been used for vessel acquisition, management stabilization, eco-friendly vessel transitions, and securing overseas logistics hubs.
A key achievement of KMPC's support is the normalization of HMM, the only national deep-sea container shipping company following Hanjin's collapse. With the backing of KMPC and the Korea Development Bank, HMM secured ultra-large container ships and improved its financial structure. By 2025, HMM is projected to record sales of 10.89 trillion won and an operating profit of 1.46 trillion won, positioning itself among the top eight global container shipping companies.
Additionally, KMPC continues to issue 'Blue Bonds' to finance the introduction of eco-friendly vessels in response to the International Maritime Organization's (IMO) stricter carbon emission regulations. This initiative has garnered recognition from international financial media such as 'The Asset' and 'Environmental Finance' for its ESG financing achievements. KMPC also provides non-financial support, including free market analysis reports, tailored management consulting, and training for maritime professionals.
Recently, KMPC has begun to actively promote the 'Second Special Support Program for Small Shipping Companies' to alleviate the financial difficulties faced by small and micro shipping companies, including coastal and inland shipping firms. Since its introduction in 2022, the first program has supported 28 companies and 65 vessels with a total of 914.6 billion won in financing.
The new program aims to double the total support target to 1.1 trillion won over the next five years compared to the first program. The scope of support has expanded from existing small shipping companies to include pilot and tugboat services, as well as new mid-sized shipping companies that exceed small business criteria and those affected by geopolitical crises. KMPC has also increased the loan-to-value (LTV) ratio and interest support limits, applied interest rate discounts for joint orders, and provided cost support for external accounting review reports for non-audited companies.
Ho Gyeong Jeong, Deputy Director of KMPC's Ship Financing Department, stated, "The Second Special Support Program aims for a total support scale of 1.1 trillion won over the next five years. We have expanded the support scale to more than double that of the first program and included pilot and tugboat services, as well as new mid-sized shipping companies and those affected by geopolitical crises."
To enhance the efficiency of support for domestic small shipping companies, KMPC has been studying the financial support structures of major countries. In Japan, for example, the independent administrative agency JRTT (Railway Construction and Transport Facility Maintenance Support Organization) operates a policy financing structure that connects shipping companies, shippers, financial institutions, and shipyards through a 'shared vessel construction system.' This system helps small and micro shipping companies procure new vessels with minimal self-funding.
Kim Sung-jin, Deputy Director of KMPC's Ship Financing Department, explained, "Japan's structure binds shipping companies, shippers, financial institutions, JRTT, and shipyards into a single community. The shared vessel construction system in Japan provides meaningful insights for supporting small passenger and inland cargo shipping operators in the domestic market."
KMPC plans to diversify its collaboration channels with commercial financial institutions beyond existing partners like Suhyup Bank and BNK Busan and Gyeongnam Bank to expand its ship collateral loan guarantees and interest support programs. The corporation aims to supply 24 trillion won in maritime finance by 2030 and achieve an asset size of 100 trillion won by 2040.
An Byeong-gil, President of KMPC, remarked, "The past eight years have been a time of reconstruction for the South Korean shipping industry, which was in crisis, as it moves toward the sea. We will continue to support the stable growth of the shipping industry, as well as expand support for eco-friendly and digital transitions and new growth areas, serving as a strong pillar for South Korea's rise as a global maritime power."
* This article has been translated by AI.
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