Jeong Eun-bo "Need for Financial Institutions' Role in Marine Finance Sector... Support for Development of New Financial Products"

[Asia Economy Reporter Kwangho Lee] On the 2nd, Jeong Eun-bo, Governor of the Financial Supervisory Service, stated, "The role of private financial companies should be expanded in the marine finance sector centered on public finance," and added, "We will support the development of various financial products, such as derivatives based on shipping freight rates."

Governor Jeong attended the '2021 Busan Marine & Finance Week' held at the Westin Chosun Hotel in Busan on the same day and said, "For the marine industry, which has recently entered a boom period, to secure medium- to long-term new growth engines, marine finance must be revitalized."

He emphasized, "Korea, with a high dependence on trade and 99% of total trade conducted via maritime transport, places great importance on the marine industry," and added, "Due to environmental regulations by the International Maritime Organization (IMO), large-scale investments such as replacing ships with eco-friendly vessels are expected in the future marine industry. Along with public finance, active roles of private financial companies are necessary."

Governor Jeong also expressed his intention to support the development of various financial products such as derivatives based on shipping freight rates.

He stated, "Major countries like the UK and China develop various freight indices through their domestic shipping exchanges and activate marine derivatives trading based on these indices, helping manage risks in the shipping industry, which is vulnerable to real economy and freight rate fluctuations," and added, "With the increased price volatility of shipping freight rates and the expansion of international liquidity supply, now is the right time to revitalize domestic marine derivatives."

He further added, "I hope that the 'KOBC Dry Bulk Composite Index,' developed and announced by the Korea Ocean Business Corporation since July last year, will serve as a starting signal leading to the establishment of a domestic shipping exchange and various marine derivatives trading."

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