Incheon Port Authority Provides 11.9 Billion KRW Support to Port Industry Affected by COVID-19

Suspension of Passenger Transport Causes Industry Losses; Port Facility Fees Reduced
80 Billion Won Support via 'SME Win-Win Fund'

Incheon Port New International Passenger Terminal and Wharf
[Photo provided by Incheon Port Authority]

[Asia Economy Reporter Park Hyesook] Incheon Port Authority announced on the 26th that it will provide 11.98 billion KRW in support to the port industry struggling due to the prolonged COVID-19 pandemic in the first half of this year.

First, the port facility usage fees and rental fees will be waived for Korea-China ferry operators and commercial facility tenants at the international passenger terminal, where passenger transportation has been suspended since January 28, 2020, due to COVID-19.

Until partial resumption of passenger transportation, 100% of the fees will be waived, and thereafter, until the infection alert is lifted, 60% (50% for commercial facility tenants) of the port facility usage fees (ship fees and cargo fees) and rental fees will be waived. The scale of support for the first half of this year is 3 billion KRW.

Additionally, 110 million KRW, which is 50% of the rental fees, will be waived for tenants of coastal passenger terminals who are facing difficulties due to the tourism slump in island regions.

Separately, to help small and medium-sized enterprises (SMEs) at Incheon Port overcome financial difficulties, 8 billion KRW in support will be provided this year through the "SME Win-Win Fund." The SME Win-Win Fund is a system that allows the interest from the port authority’s bank deposits to be directly used to reduce loan interest rates for companies.

However, the 30% rental fee reduction benefit provided to companies located in the Incheon Port hinterland complex and sites from 2020 until last year will be discontinued.

The authority explained that after investigating the actual conditions of tenant companies, it was decided to stop support as operating profits increased due to the growth in cargo volume at Incheon Port.

An official from Incheon Port Authority stated, "We hope this support will help stabilize the management of shipping companies affected by COVID-19 even a little," and added, "We will also promote separate marketing programs for hinterland complex tenants to help increase cargo volume."

Meanwhile, since 2019, the authority has been implementing the "Ship Fee Reduction System for Deep-Sea Route Operating Vessels" to attract new routes and the "Ship Fee Reduction System for Fleet Replacement Vessels at Incheon Port" to increase transshipment cargo, as reflected in the "Regulations on the Use and Fees of Port Facilities at Incheon Port."

Furthermore, to help the port industry overcome damages, 27.17 billion KRW was supported in the previous year, and 100 million KRW was provided last year to support the livelihoods of daily workers who lost work due to the suspension of Korea-China passenger transportation.

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