BNK Busan Bank Supports Strengthening Shipbuilding Industry Competitiveness... Issuance of Advance Payment Refund Guarantee

Busan Bank has stepped up financial support to strengthen the competitiveness of the shipbuilding industry, a key business in the Southeast region.

On the 25th, BNK Busan Bank issued an advance payment refund guarantee (RG) worth approximately $379 million (about 500 billion KRW) to Samsung Heavy Industries.

An advance payment refund guarantee (RG) is a guarantee in which the guarantor pays the advance payment received from the shipowner on behalf of the shipbuilder if the shipbuilder fails to build the ship within the specified period or goes bankrupt.

The issuance target is three out of sixteen 16,578 TEU methanol-powered container ships ordered by Samsung Heavy Industries from Asian shipping companies in July, and the advance payment refund guarantee (RG) was issued using the export credit insurance policy of the Korea Trade Insurance Corporation.

Busan Bank Headquarters.

Lee Sang-ryong, Head of Investment Finance Division at Busan Bank, said, “Recently, orders for domestic shipbuilders have recovered, centered on high value-added ships such as large LNG carriers. We will promote financial support for domestic shipbuilders in collaboration with policy financial institutions, taking this issuance of the advance payment refund guarantee (RG) as an opportunity.”

Busan Bank is expanding support for the shipbuilding industry and diversifying marine investment projects, and plans to implement various financial support policies to expand support for the shipbuilding industry, a key industry in the Southeast region, in the future.