Korea-Japan Passenger Ferry Companies' Port Facility Usage Fee Discount Rate Expanded to 40%

On the 9th, a banner stating the temporary suspension of passenger ferry services between Korea and Japan was hung in front of the Busan Port International Passenger Terminal in Dong-gu, Busan. [Image source=Yonhap News]

[Asia Economy Reporter Joo Sang-don] The government has decided to expand the discount rate on port facility usage fees for Korea-Japan ferry operators to 40% until the COVID-19 alert is lifted, and to provide a 100% rent reduction for duty-free shops and convenience stores located in the Busan International Passenger Terminal.

The Ministry of Oceans and Fisheries announced on the 17th that it will implement additional support measures for Korea-Japan passenger route operators and businesses located in the Busan International Passenger Terminal, which are facing management difficulties due to Japan's restriction on entry by sea starting from the 9th, citing COVID-19.

Earlier, on the 2nd, the Ministry of Oceans and Fisheries had implemented a 100% reduction (retroactive from February 1) in port facility usage fees and terminal rents for domestic Korea-Japan passenger-only operators until the COVID-19 alert is lifted, and a 30% reduction for domestic Korea-Japan ferry operators considering cargo transport. However, due to the suspension of passenger transport from the 9th, worsening business conditions led to an expansion of the discount rate and the scope of beneficiaries.

Financial support will also be provided. Up to 2 billion KRW in emergency management funds will be offered per company to domestic Korea-Japan passenger-only and ferry operators. The Korea Ocean Business Corporation will not receive interest income on funds deposited with financial institutions; instead, the financial institutions will reduce the loan interest rates for the operators by the equivalent amount of the interest. Applications will be accepted starting from the 18th through separate announcements.

Kim Jun-seok, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, stated, "We will implement the additional support measures for the Korea-Japan route swiftly to ensure rapid execution on the ground," and added, "We will continue to closely monitor the damage situation in the shipping and port industry and promptly prepare additional support measures if the damage expands."

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