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Vessel Acquisition Investment Program

A program investing in new and used vessels to facilitate ship acquisition for domestic carriers.

Features and Benefits

  • Supports eco-friendly shipbuilding orders to improve cost competitiveness and fleet efficiency
  • Offers flexible financing options, including sole investment or joint senior/subordinated structures with other lenders

Key Details

Key Details
ClassificationDetails
Financial structure Investment via Ship Investment Companies or Capital Markets Act-compliant funds
Investment amount (Vessel Value×Investment%)-(Third-party Financing)
Note: For newbuildings, adjustments may occur based on post-delivery appraisal
Investment proportion Investment ratio set by credit rating, project stability, and return profile
Investment period Period confirmed by participating lenders, considering the vessel’s operational life
Repayment method Detailed terms settled through mutual consultation and feasibility studies

Financial structure diagram

Structure diagram for new shipbuilding introduction

Structure diagram of second-hand ship introduction

Structure diagram of second-hand ship introduction
Shipping Financing

Ship introduction Guarantee Program

A guarantee program for loans borrowed from financial institutions to facilitate the acquisition of vessels by domestic shipping companies..

Features and Benefits

  • Supports the efficiency of capital raising and enhances cost competitiveness by strengthening the creditworthiness of domestic carriers.
  • available for financing borrowed from international financial institutions

Key Details

Key Details
ClassificationDetails
Guarantee beneficiary Creditors of main debt contract (financial institution that issues loans)
Guarantee period Within financial period of main debt
Guaranteed amount Financial amount subject to guarantee
Guarantee ratio 95%
Guarantee amount Guaranteed amount × guarantee ratio
Guarantee rate Basic rate - discount rate + premium rate
Guarantee fee Guarantee amount × Guarantee rate
Guarantee debt* The amount of outstanding principal multiplied by guarantee ratio and equivalent of outstanding
interest
Installment requirement* Criteria for lump-sum payment of guarantee fee : Guarantee fee for Senior Loan of KRW 2.5 billion or
more Guarantee fee for Junior(Subordinated) Loan of KRW 2 billion
Guarantee period: six years or more (Small and medium-sized shipping companies: Two years or more)
*Both requirements must be met, and small and medium-sized shipping companies can be granted
eased installments

※ For more details, refer to the KOBC’s guarantee agreement Ⅲ at the time of consultation.

Financial structure diagram (Example of use of ship investment company)

Structure diagram for new shipbuilding introduction

Financial structure(Use of Ship investment company(Example))

Structure diagram of second-hand ship introduction

Financial structure(Use of Ship investment company(Example))
Shipping Financing

Ship S&LB Program

A program prividing financial support to domestic shipping companies to enhance their liquidity by purchasing their vessels and leasing them back

Feature and Benefit

  • Instant cash flow through vessel sales
  • Seamless vessel operations post-ownership transfer

Key Details

Key Details
ClassificationDetails
Financial structure Investment via Ship Investment Companies or Capital Markets Act-compliant funds
Investment target Vessels owned by Shipping companies
Investment amount Appraised Vessel Value X Investment Ratio%
Investment proportion Investment ratio set by credit rating, project stability, and return profile
Ship price evaluation Appraised values from multiple evaluation agencies recognized by the Corporation
Investment period Within 5 years from the delivery date of the vessel, in principle
Applicable interest rate Determined based on credit rating, investment period, and investment ratio
Repayment method Detailed terms settled through mutual consultation and feasibility studies

Financial structure diagram (examples)

Financial structure diagram (examples)

* SIC : Ship Investment Company ** SPC : Special Purpose Company 

Shipping Finance

Ship Refinance Guarantee Program

A program providing guarantees for loans obtained by domestic shipping companies, using their existing vessels as collateral to support and enhance their liquidity

Features and Benefits

  • Lower rates through Corporation-backed refinancing
  • Immediate cash flow by leveraging vessels as collateral

Key Details

Key Details
ClassificationDetails
Guarantee beneficiary Creditors of main debt contract (financial institution that handles loans)
Guarantee period Within financial period of main debt
Guaranteed amount Financial amount subject to guarantee
Guarantee ratio Financial amount subject to guarantee
Guarantee amount 95% or more
Guarantee rate Guaranteed amount×guarantee ratio
Guarantee fee Basic rate × (1 ± discount/premium rate (considering project feasibility and policy factors))
Guarantee debt* Guarantee amount × Guarantee rate
Guarantee debt* The amount of outstanding principal multiplied by guarantee ratio and equivalent of outstanding
interest
Installment requirement* Criteria for lump-sum payment of guarantee fee: Prior guarantee fee of KRW 2.5 billion or more posterior guarantee fee of KRW 2 billion
Guarantee period: 6 years or more (Small and medium-sized shipping companies: 2 years or more)
* Both requirements must be met, and small and medium-sized shipping companies can be applied with eased installments

※ For more details, refer to the KOBC’s guarantee agreement Ⅲ at the time of consultation.

Financial structure diagram (examples)

Refinancing for ships owned by shipping companies

In case of direct investment in KOBC

Refinancing for ships owned by overseas SPC

In case of direct investment in KOBC
Shipping Financing

Special support programs for small and mid-sized shipping companies

This program is a dedicated support initiative designed to enhance access to ship financing for small and medium-sized shipping companies that face constraints due to low credit ratings or limited participation from private financial institutions.

Features and Benefits

  • Customized Financial Support

    Provision of tailored financial solutions for SMEs through preferential terms, including favorable Loan-to-Value (LTV) ratios and interest rates

  • Comprehensive Support Framework

    Implementation of a structured support system, including:

    • Liquidity support (e.g., interest subsidy programs)
    • Non-financial support (e.g., consulting and advisory services)

Main Provisions

(1)Eligibility Criteria for Ship Financing Support

)Eligibility Criteria for Ship Financing Support
CategoryDescription
Eligibility Criteria Applicant Eligibilty Coastal and ocean-going shipping companies classified as SMEs
Vessel Eligibility Vessels not exceeding 25 years of age as of the end of the support period
Financial Criteria Debt Ratio 500% or less, based on the end of the most recent fiscal year
Interest Coverage Ratio 1.0 or higher, calculated as the simple average over the most recent three fiscal years
Project Standards Subject to the Corporation’s internal evaluation standards
Project Standards Subject to the Corporation’s internal evaluation standards
Audit Opinion - Externally Audited Entities: Required to have received an Unqualified audit Opinion from an external auditor
- Non-Audited Entities: Subject to assessment based on overall financial soundness and project feasibility.
Restrictions - Support shall be provided within the Corporations’s exposure limits and shall not be extended to entities subject to investment or guarantee restrictions.

(2)Special Support Program for SME shipping companies

Special Support Program for SME shipping companies
Shipping Finance

Tonnage Provider
Project

This program aims to support Korean shipping companies by acquiring required vessels through newbuilding or second-hand purchases and providing them under long-term charter arrangements.

Features and Benefits

  • Support is available for projects that fall under four business categories designated by KOBC or are required in accordance with government policy.

    • Supports Korean shipping companies by providing up to 100% investment and long-term charter arrangements, enabling them to secure stable fleet capacity.

Program categories of Tonnage Provider Project

Program categories of Tonnage Provider Project
Business categories
① Supporting the Securing of Strategic Cargo Transport Fleet ② Facilitating the Transition to Eco-Friendly Vessels ③ Facilitating Collaboration between SMEs and Large Shipping Companies ④ Supporting international Chartering of Korean Shipping Companies

Key Terms

Key Terms
CategoryDetails
Financial Structure - Investment through the establishment of an SIC for a vessel acquisition
- Investment through funds established for financing the acquisition of newbuild and secondhand vessels( including the acquisition of beneficiary certificates of funds or the purchase of bonds in accordance with the Capital Markets Act)
Amount of investment Within the budgetary limits of the Corporation’s Tonnage Provider Project
Investment Ratio Determined individually for each shipping company considering the credit rating, the existence of long-term charter contracts, and project feasibility, etc. (LTV up to 100%)
Investment Period To be determined through consultation in consideration of financing conditions, etc. (up to 25 years of vessel age)
Charter Hire To be determined in consideration of corporate creditworthiness, investment ratio, investment period, and market conditions, etc.
Payment Method To be determined through consultation in consideration of overall project conditions
Shipping Financing

Tonnage Bank Project

In case of domestic shipping company is under restructuring, KOBC purchases the company’s ships and leases them back in accordance with policy decision.

Feature and Benefit

  • Support shipping company’s management stability and prevent the outflow of domestic tonnages to overseas by providing emergency liquidity to domestic shipping company.
  • Finding a suitable method for the company which is under restructuring and conducting the project through Emergency response fund etc.

Main support and condition

Main support and condition
ClassificationDetails
Financial structure - Shipping Assets of small and mid-sized shipping companies that have been notified of an insolvent company or have similar indications.
- Shipping Assets of shipping companies in workout program or undergoing corporate rehabilitation.
Investment Amount Within the budget of the Restructuring Support Fund.
Shipping Financing

Offshore Wind Infrastructure Investment

This program aims to finance the expansion of supply chains for offshore wind infrastructure, including specialized installation vessels, necessary to promote the deployment of offshore wind supply.

Key Features & Benefits

  • Supports the acquisition of specialized vessels across all stages of offshore wind operations, fostering industry-wide growth green investment, and strengthening the competitiveness of Korea’s maritime industry.

Key Terms

Key Terms
CategoryDetails
Financial Structure Financial agreements are executed through an SPC with offshore wind vessel operators, while the operators enter into EPC and T&II contracts.
* EPC(Engineering, Procurement, Construction) : A company or consortium responsible for the full scope of project delivery, form design and procurement to construction and completion
** T&I(Transportation and Installation) : Activities involving the transportation of offshore wind equipment and structures, as well as the execution of offshore installation works for power generation.
Participants KOBC, Public power generation companies, Offshore wind developers(responsible for project development and operation), offshore wind specialized vessel operators, and domestic and international financial institutions
Subject Vessels Offshore Wind Turbine Installation Vessel(WTIV), Foundation Wind Turbine Vessel(FWCV), Cable Laying Vessel(CLV), Service Operation Vessel(SOV), Crew Transfer Vessel(CTV), Geotechnical Vessel(GTV)
Investment Ratio Determined based on a comprehensive assessment of the operator’s internal credit rating, as well as the project’s mid- to long-term stability and profitability.
Investment Period Established through feasibility analysis and consultation among participating parties, taking into account the long-term nature of the project.
Repayment Method Determined through mutual agreement after reviewing the project characteristics and feasibility.

Finacncial Structure(Example)

Finacncial Structure
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C1-7F, 38, Marine city 2-ro, Haeundae-gu, Busan, 48120, Republic of Korea

Tel : +82-51-795-1500 / Fax : +82-51-795-1499

CEO : Ahn Byung-gil, Business Registration No.:669-82-00218

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