KAMCO (Korea Asset Management Corporation) is partnering with Standard Chartered Bank's Singapore branch to jointly establish a ship fund worth approximately 286 billion won. This initiative aims to expand financial support for domestic small and medium-sized shipping companies facing challenges in securing foreign currency long-term funding.
KAMCO announced on the 25th that it signed a 'Memorandum of Understanding for the Activation of Ship Financing' at the headquarters of SC Bank Singapore on the 24th.
Under this agreement, both institutions will collaboratively create a ship fund to support domestic small and medium-sized shipping companies and explore ways to expand foreign currency procurement and the ship financing market. The plan is to combine KAMCO's experience in managing ship funds with SC Bank's global financial capabilities.
Initially, they will establish a ship fund of about 286 billion won to support mid-sized shipping companies based in Busan. Various methods, including foreign currency bond issuance and currency swaps, are being considered to secure the necessary foreign currency funds.
KAMCO plans to use this agreement as a stepping stone to enhance cooperation in ship financing with global financial institutions. The goal is to improve the funding conditions for small and medium-sized shipping companies, which find it relatively difficult to secure long-term and large-scale foreign currency funding, and to support their financial restructuring.
Lee Jong-guk, Vice President of KAMCO, stated, "We hope this collaboration will increase global financial institutions' interest and participation in domestic ship financing. We will explore various cooperation models to create a financial environment that supports the growth of small and medium-sized shipping companies."
Since 2015, KAMCO has established ship funds totaling approximately 2.5 trillion won, supporting 143 vessels for domestic shipping companies, both used and new.
* This article has been translated by AI.
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