South Korea is aiding the development of maritime transport on polar routes with the launch of a new financing program. This program, initiated by the Korean Ocean Business Corporation (KOBC), allocates 120 billion won (87 million dollars) annually for investment in icebreakers and ice-class commercial vessels.
Details of the Financing Program
This program enables Korean owners looking to purchase new or second-hand ships for trade in the Northern Sea route to benefit from this financing without restrictions on the type of vessel. Container ships, bulk carriers, oil tankers, and car and truck carriers can all utilize this facility.
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KOBC can provide subordinate financing of up to 30% of the ship's price. By combining this financing with primary loans from other lenders, owners will be able to finance up to 90% of the ship's value, significantly reducing the need for private investment to launch icebreakers.
South Korea's National Goal in Polar Transport
This initiative goes far beyond Seoul's current support for innovative and environmentally friendly ships in the Arctic and has expanded to finance second-hand vessels as well. The South Korean government aims to establish a fleet under Korean control capable of operating in the polar corridor.
Earlier this year, Seoul elevated maritime transport in the Arctic as a national policy and commenced its first container ship test on the Northern Sea route. The 2758 TEU container ship named PanStar Acro departed from Busan port on August 22 and reached Felixstowe port on September 12 after completing the Northern Sea route. PanStar has announced that it is considering up to three polar trips by 2027 and gradually intends to increase the number of trips.
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