Shinbo Supports Samsung Heavy Industries Partners with 23.7 Billion Won 'Joint Project Guarantee'

Joint Project Guarantee Operation Structure. Photo by Korea Credit Guarantee Fund

[Asia Economy Reporter Song Seung-seop] The Korea Credit Guarantee Fund announced on the 1st that it will support "joint project guarantees" for companies participating in Samsung Heavy Industries' "Icebreaking LNG Carrier Construction Project for Arctic Resource Development." Nineteen partner companies will receive benefits totaling 23.7 billion KRW.

Typically, icebreaking LNG carriers are classified as high value-added vessels requiring higher technical skills compared to general LNG carriers. As the paradigm of the global shipbuilding industry shifts and demand for high value-added and eco-friendly vessels increases, the fund plans to assist the industry in smooth financing.

Even partner companies with medium to low credit ratings, whose creditworthiness has declined or financial ratios have weakened due to the prolonged slump in the shipbuilding industry, can receive support. The joint project guarantee is a product where the Credit Guarantee Fund evaluates the feasibility of projects jointly promoted by large corporations and partner companies and provides guarantees to the partner companies. Unlike the previous method that mainly assessed individual companies' finances and credit, this approach reviews the innovation and growth potential of the joint project to provide support.

A representative from the Credit Guarantee Fund stated, "We have been able to contribute to revitalizing the domestic shipbuilding industry, which brings job creation and regional economic activation," and emphasized, "We will actively support the smooth execution of various joint projects to secure the competitiveness of the nation's key industries."

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