Shipping Crisis Triggered by Middle East... KMPC Eases Pressure with Crisis Response Fund

Byunggil Ahn, President of Korea Ocean Business Corporation

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As the prolonged Middle East war and rising interest rates increase the financial burden on the shipping industry, the Korea Maritime Promotion Corporation (KMPC) is holding a briefing session on its crisis response fund and encouraging participation from domestic shipping companies.

KMPC announced that it will hold a two-day business briefing session for the ‘Shipping Industry Crisis Response Fund’ on April 15 and 16. The fund was created to support the normalization of management for small and medium-sized Korean shipping companies and to promote environmental, social, and governance (ESG) management practices.

The Shipping Industry Crisis Response Fund is a policy finance program designed to simultaneously support management stability and eco-friendly transition in the shipping industry. Specifically, it consists of the ‘Shipping Industry Structural Innovation Fund’, which supports the preemptive restructuring of domestic shipping companies, and the ‘Shipping Industry ESG Support Fund’, which promotes ESG management through the acquisition of green bonds and sustainability-linked bonds.

The briefing session for medium-sized shipping companies will be held today at the Nuri Hall of the Irum Center in Yeouido, Seoul, and the session for small shipping companies will take place on April 16 at the Ruby Hall of the FKI Center, also in Yeouido, Seoul. Eligible participants include domestic medium-sized and small shipping companies, as well as financial institutions. Those wishing to participate can apply by emailing the KMPC briefing coordinator.

This briefing session will focus in particular on explaining the scope of support and practical applications of the Structural Innovation Fund for shipping companies facing increased management burdens due to the aftermath of the Middle East war and the high interest rate environment.

In addition, KMPC will also provide advance information regarding the ‘Shipping Industry ESG Support Fund’ public offering project, which is scheduled for next month, to help companies respond to the strengthening of eco-friendly shipping regulations.

Byungkil Ahn, President of Korea Maritime Promotion Corporation, stated, “The financial burden on small and medium-sized domestic shipping companies has significantly increased due to stricter environmental regulations and the impact of the Middle East war,” adding, “Through the crisis response fund, we will actively support preemptive liquidity measures and encourage the transition to eco-friendly vessels.”

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