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Stepping up Comprehensive Support Including Unsecured Credit Guarantees for Shipping Companies Affected by the Prolonged Middle East Conflict

  • Date

    2026.05.08.

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    65

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Stepping up Comprehensive Support Including Unsecured Credit Guarantees for Shipping Companies Affected by the Prolonged Middle East Conflict
- The Ministry of Oceans and Fisheries and the Korea Ocean Business Corporation implement a liquidity support package to address Korean shipping companies’ management difficulties -


  The Ministry of Oceans and Fisheries (MOF; Minister Hwang Jong-woo) and the Korea Ocean Business Corporation (KOBC; President Ahn Byung-gil) announced that they will implement a liquidity support package—including the establishment of unsecured credit guarantees—to address the management difficulties of Korean shipping companies caused by the prolonged Middle East conflict.

  Since the outbreak of the Middle East conflict, 26 Korean ships have been stalled in the Strait of Hormuz, where passage has been blocked. These vessels are facing difficulties due to rising insurance premiums, fuel costs, and crew risk allowances, and as the operating environment deteriorates—with some shippers abandoning shipments due to rising freight rates —there are concerns about a liquidity crunch for shipping companies.

  Accordingly, MOF and KOBC are newly providing unsecured credit guarantees to Korean shipping companies that have suffered damage due to the Middle East conflict. This is a new measure that allows shipping companies to raise short-term operating funds without the burden of collateral, as approved by the Minister of the Ministry of Oceans and Fisheries to respond to urgent economic and social crises. The maximum support per company is KRW 2.5 billion, and the guarantee period applies to short-term loans of up to one year and may be extended up to five years.

  The improved procedure for the emergency business stabilization fund* reduces the time required to receive support by up to 3 weeks. In addition, cost burdens such as various fees are expected to decrease accordingly. The support limit is KRW 3 billion per shipping company, with a one-year maturity that may be extended by one year. In addition to the improved emergency business stabilization fund, shipping companies may also receive the existing emergency business stabilization fund (up to KRW 100 billion per company) if necessary.

    * Improved from the method of indirectly acquiring corporate bonds by establishing a project to a method wherein KOBC directly acquires them

  In addition, the repayment period for the principal and interest of existing financial products nearing maturity will be extended, and the loan-to-value (LTV) ratio for ship collateral loans will be temporarily raised from the existing 60-80% to 70-90%. These improvements are expected to enable shipping companies to secure additional liquidity by leveraging their vessel assets.

  Starting Tuesday, April 28, KOBC will provide information on detailed support measures, including unsecured credit guarantees, on its website (www.kobc.or.kr) and accept applications.

  Meanwhile, MOF secured a KRW 1.4 billion budget in the first supplementary budget for 2026 to support insurance premium surcharges for small and medium-sized shipping companies in the Strait of Hormuz. Applications from small and medium-sized shipping companies will be accepted through KOBC starting early May.

 Minister of the Ministry of Oceans and Fisheries Hwang Jong-woo stated that the government will provide comprehensive support to ensure that Korean shipping companies—which are struggling due to the Middle East conflict—do not face financial difficulties. “We will do our best to maintain import and export logistics networks and prevent the national economy from being shaken.”

  Meanwhile, KOBC President Ahn Byung-gil noted that management uncertainty in the shipping industry has surged recently due to the impact of the Middle East conflict. “Through this support program, we will do our best to alleviate the liquidity crisis of our shipping companies facing temporary difficulties and ensure the stability of the shipping industry as a whole," he vowed.
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