Korea Development Bank Launches 180 Billion Won 'Ship Innovation Program' to Support Small and Medium Shipping Companies

Core Program of the 1.4 Trillion KRW 'KDB SOS Fund'
"Introduction of Two Ultra-Large Eco-Friendly Bulk Carriers"

Korea Development Bank announced on the 31st that it will officially launch the 'Republic of Korea Ship Innovation Program,' a support program for small and medium-sized shipping companies worth $121.5 million (approximately 178.5 billion KRW). The program maximizes the financial procurement efficiency of shipping companies by applying a complex investment and loan structure rather than a simple loan structure.

Seoul Yeongdeungpo-gu Yeouido Korea Development Bank Headquarters building. Provided by KDB.

As the first project of the program, the bank completed ship financing for the introduction of two ultra-large eco-friendly bulk carriers on the 27th.

The first and second ships under this program, for which the bank provided financial advisory and brokerage services, will be operated by Wooyang Shipping, a shipping company headquartered in Busan. The financial support amount is $121.5 million. Korea Development Bank invested $74.2 million (approximately 109 billion KRW), and the Export-Import Bank of Korea invested $47.3 million (approximately 69.5 billion KRW).

Wooyang Shipping, established in 1982, is a leading Korean bulk carrier specialist. Through this program, Wooyang Shipping procured the large investment required for ship purchase in an optimal structure. The ships will be deployed on routes under long-term transportation contracts with Vale S.A., the world's largest iron ore company based in Brazil.

A representative from Korea Development Bank stated, "Starting with the introduction of ultra-large eco-friendly bulk carriers, we plan to actively promote financial support to help domestic small and medium-sized shipping companies make greater leaps forward. We will also actively support the early securing of growth engines for the marine industry."

The Republic of Korea Ship Innovation Program is a core project of the $1.4 billion (approximately 2.05 trillion KRW) 'KDB Smart Ocean Shipping (SOS) Fund.' Korea Development Bank will invest up to $980 million (approximately 1.44 trillion KRW) in this fund.