Expansion of Haejingong Guarantee Scope to Include 'Credit and Asset-Backed Loans'... Will It Ease Funding for Small and Medium Shipping Companies?

Partial Amendment Bills of the Korea Ocean Business Corporation Act and the Marine Ecosystem Act Passed in the Plenary Session

[Sejong=Asia Economy Reporter Joo Sang-don] The guarantee scope of the Korea Ocean Business Corporation will be expanded to include credit loans and asset-backed loans. Until now, guarantees were only possible for debts related to funds for acquiring assets related to the shipping and port industry. This establishes a foundation to more actively support small and medium-sized shipping companies facing financial difficulties.

On the 19th, the Ministry of Oceans and Fisheries announced that the "Partial Amendment Bill of the Korea Ocean Business Corporation Act," which includes these contents, passed the National Assembly plenary session.

The partial amendment bill of the Ocean Business Corporation Act includes expanding the scope of guarantees that the Korea Ocean Business Corporation can provide to credit loans and asset-backed loans for shipping and port operators. Until now, credit loans were only provided when support was needed for the shipping and port industry in response to urgent economic and social crises. Additionally, the scope of guarantees has been expanded to include bid guarantees and contract performance guarantees for freight transport contracts.

Through the "Partial Amendment Bill of the Marine Ecosystem Act," which also passed on the same day, a legal basis was established to systematically set up and operate "marine ecological corridors" that connect areas or waters with high protection value from a marine ecological perspective. The Ministry of Oceans and Fisheries expects that management will shift from the previous individual and fragmented management of marine ecosystems by the state and local governments to management that considers the functions and structural connectivity of marine ecosystems.

The "Partial Amendment Bill of the Port Act" also passed the National Assembly. Accordingly, companies returning to Korea after expanding overseas can move into port hinterland complexes, and priority occupancy is possible in case of competition for occupancy.

In addition, four other bills also passed the plenary session, including the "Partial Amendment Bill of the Fisheries Resources Management Act," which stipulates that non-governmental members of the Fisheries Resources Management Committee will be punished like public officials if they violate bribery laws under the Criminal Act, and the "Partial Amendment Bill of the Act on the Security of International Voyage Ships and Port Facilities," which requires the use of equipment certified by specialized institutions during port security inspections.

Shin Jae-young, the Ministry of Oceans and Fisheries' Regulatory Reform Legal Officer, said, "Through the amended bills, we expect to create an environment where small and medium-sized shipping companies and returning domestic companies can grow, and to preserve the ecological value of our seas more systematically. We will do our best to ensure that the intent of the amendments is fully reflected in the upcoming subordinate legislation and the operation of the laws."

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