Special Guarantee and Interest Support for Installing Eco-Friendly Equipment on 53 Ships in the First Half of This Year

[Asia Economy Reporter Joo Sang-don] The Ministry of Oceans and Fisheries announced on the 6th that, following the results of the '2020 Eco-friendly Equipment Improvement Secondary Interest Subsidy Project' public contest, a total of 15 shipping companies and 53 vessels with 77 pieces of equipment (34 scrubbers, 42 ballast water treatment systems, and 1 power take-off device) have been finally selected as support targets.

The required loan amount for equipment installation is approximately 123.8 billion KRW. The Ministry plans to support interest equivalent to 2% of the loan amount over the next six years (1-year grace period, 5-year equal repayment). The Korea Ocean Business Corporation will provide special guarantees to ensure that the selected shipping companies can smoothly obtain loans for equipment installation funds.

This project was first introduced last year to alleviate the financial burden on shipping companies due to the 2020 International Maritime Organization (IMO) strengthening of the sulfur content standard in ship fuel oil (from 3.5% to 0.5%) and the mandatory installation of ballast water treatment systems. Last year, the Ministry conducted four rounds of public contests, supporting the installation of a total of 176 eco-friendly equipment, including scrubbers for 19 shipping companies (121 vessels) and ballast water treatment systems for 13 shipping companies (55 vessels).

The Ministry plans to hold another public contest in the second half of the year to select additional shipping companies for support. Shipping companies that were unable to apply in the first half or plan to install equipment in the second half of this year or the first half of next year can apply in the upcoming contest.

Kim Jun-seok, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, said, "The IMO's sulfur content regulation for ship fuel oil has been enforced since January 1 of this year, and we understand that the global shipping industry is facing significant concerns and burdens." He added, "To alleviate these burdens on shipping companies and strengthen the competitiveness of the shipping industry, we will continue to actively support the necessary measures for installing eco-friendly equipment."

This content was produced with the assistance of AI translation services.