Operation of National Essential Ships

Main Business

Maritime Finance Global Leader

Home

Shipping policy business operation

Operation of National
Essential Ships

Designation and operation of National Essential Ships (88 ships) in accordance with the 「ACT ON MAINTAINING MARINE TRANSPORTATION AND PORT FUNCTIONS」 for stable transportation of strategic goods and reliable employment of korean crew in case of emergency, wherein the government compensates shipping companies’ wage burden.
KOBC accepts applications related to designation and operation of National Essential Ships and entrust with calculation and payment of compensation for loss and training on National Essential Ships

Feature and Benefit

Designate and operate National Essential Ships to maintain marine transportation and port functions in the event of war, incidents and other emergencies
Limiting the numbers of foreign crew on National Essential Ships, contributes to the increase in employment of korean crews, and the government provides compensation
for increase in wages.

Key details

Key details
Classification	Details
Target vessel	Ships with international gross tonnage of 10,000 tons or more
Obligation	Measures within six foreign crew members after designation of National Essential Ships
Incentive:	compensation for loss caused by difference in wages between Korean and foreign crew Partially reduce port facility usage fee (ship entry/departure fee)
Payment terms of compensation for loss	Full annual compensation in case of more than 320 operating days per year * However, newly designated ships are counted from the point of compliance with criteria for limiting foreign crew For operation of less than 320 days, payment shall be made in proportion to the actual number of operating days based on 320 days

Application process

Korea Ocean Business Corporation(Main Business : Receive and review applications related to designation and operation of National Essential Ships, Calculation and payment of Compensation for Loss, Training on the role of National Essential Ships)
National shipping company→Korea Ocean Business Corporation:①Application for designation and operation of National Essential Ships
Governmental Agency (Ministry of Oceans and Fisheries)→Korea Ocean Business Corporation:②National Essential Ships designation and approval for operation
Korea Ocean Business Corporation→National shipping company:③Notification of application result, payment of Compensation for Loss