Marine Financing Assistance

The Marine Finance Center has lowered the minimum cost of offshore plant construction projects subject to mandatory feasibility studies from US$500 million to US$300 million.
The Marine Finance Center has lowered the minimum cost of offshore plant construction projects subject to mandatory feasibility studies from US$500 million to US$300 million.

 

The Marine Finance Center of South Korea announced on April 27 that it has lowered the minimum cost of offshore plant construction projects subject to mandatory feasibility studies from US$500 million to US$300 million.

Established by the Export-Import Bank of Korea, Korea Development Bank and Korea Trade Insurance Corporation, the Marine Finance Center is an organization providing marine financing assistance and responsible for refund and contract fulfillment guarantee in the event of non-fulfillment of offshore plant construction and shipbuilding contracts by South Korean shipbuilding companies such as Daewoo Shipbuilding & Marine Engineering.

The center conducts a feasibility study on any such project that has a certain contract value, which has been lowered to US$300 as mentioned above.

The center is planning to strengthen its criteria regarding the assessment of the profitability of merchant ship contracts, too. It is going to initiate contract price adequacy assessment concerning merchant vessels such as container ships and LNG carriers and provide its refund guarantee only for profitable projects and contracts.

Specific evaluation models for the purpose are to be prepared before the end of the first half of this year by the Marine Finance Center, accounting firms, companies in the shipbuilding and maritime industries and so on.

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