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Support for Coastal Vessel Modernization to Establish Reliable Sea Routes
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Date
2026.08.21.
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Support for Coastal Vessel Modernization to Establish Reliable Sea Routes
The Ministry of Oceans and Fisheries (MOF; Minister Hwang Jong-woo) announced that three coastal shipping companies—Seyang Shipping, Taekyung Tanker, and Dokdo Cruise—have been selected as the beneficiaries for the second round of the 2026 Coastal Vessel Modernization Fund.
MOF has operated the Modernization Fund since 2016 to support the modernization of aging coastal passenger ships. With a total of KRW 249 billion raised to date, 14 vessels have received funding including the shipping companies selected in this second round of support. Among them, six coastal passenger ships including the Queen Mary (Mokpo–Jeju) and the Hanil Gold Stellar (Wando–Jeju) have completed modernization and they are now operating on their respective routes. The fund's support was initially limited to coastal passenger ships; to balance support between the coastal passenger and cargo shipping industries, however, the scope of support was expanded to include coastal cargo ships in 2024.
Shipping companies selected as beneficiaries receive fund support covering a minimum of 30% to a maximum of 60% of the vessel's construction cost depending on the ship's price. The shipping company then operates the vessel and repays the construction cost for 15 years (with a 3-year grace period followed by 12-year installment payments), after which it acquires full ownership of the vessel. The selected three shipping companies will receive 50% of the ship price from the fund capital.
Among these, Seyang Shipping and Taekyung Tanker plan to build vessels of the same size by jointly ordering them from the same shipyard. By sharing construction-related costs such as design fees, joint ordering is expected to reduce costs compared with individual orders and make the shipbuilding process more efficient.
For shipping companies that are willing to modernize their vessels but were unable to participate in this call for proposals, MOF plans to conduct a third call for proposals in August or September of this year and to support the construction of vessels for each shipping company by providing various measures such as consulting.
Businesses seeking support from the Modernization Fund can apply through the website of Global Marine Financing, a fund management company licensed by MOF (www.globalmarifin.com). Eligible companies will be selected based on an evaluation of their business plan feasibility, financing plans, business circumstances, and financial soundness. More detailed information regarding the public offering is available on the Global Maritime Finance website (www.globalmarifin.com).
“Modernizing coastal vessels is essential to ensuring reliable maritime transportation for island residents and making coastal logistics more competitive. The government will continue to support the modernization of aging vessels while offering practical assistance, including joint ordering and customized consulting, so that more shipping companies can take part in the program,” said Kim Hye-jeong, Director General of Shipping and Logistics at MOF.
- Selection of three shipping companies, including Seyang Shipping, for the Coastal Vessel Modernization Fund
The Ministry of Oceans and Fisheries (MOF; Minister Hwang Jong-woo) announced that three coastal shipping companies—Seyang Shipping, Taekyung Tanker, and Dokdo Cruise—have been selected as the beneficiaries for the second round of the 2026 Coastal Vessel Modernization Fund.
MOF has operated the Modernization Fund since 2016 to support the modernization of aging coastal passenger ships. With a total of KRW 249 billion raised to date, 14 vessels have received funding including the shipping companies selected in this second round of support. Among them, six coastal passenger ships including the Queen Mary (Mokpo–Jeju) and the Hanil Gold Stellar (Wando–Jeju) have completed modernization and they are now operating on their respective routes. The fund's support was initially limited to coastal passenger ships; to balance support between the coastal passenger and cargo shipping industries, however, the scope of support was expanded to include coastal cargo ships in 2024.
Shipping companies selected as beneficiaries receive fund support covering a minimum of 30% to a maximum of 60% of the vessel's construction cost depending on the ship's price. The shipping company then operates the vessel and repays the construction cost for 15 years (with a 3-year grace period followed by 12-year installment payments), after which it acquires full ownership of the vessel. The selected three shipping companies will receive 50% of the ship price from the fund capital.
Among these, Seyang Shipping and Taekyung Tanker plan to build vessels of the same size by jointly ordering them from the same shipyard. By sharing construction-related costs such as design fees, joint ordering is expected to reduce costs compared with individual orders and make the shipbuilding process more efficient.
For shipping companies that are willing to modernize their vessels but were unable to participate in this call for proposals, MOF plans to conduct a third call for proposals in August or September of this year and to support the construction of vessels for each shipping company by providing various measures such as consulting.
Businesses seeking support from the Modernization Fund can apply through the website of Global Marine Financing, a fund management company licensed by MOF (www.globalmarifin.com). Eligible companies will be selected based on an evaluation of their business plan feasibility, financing plans, business circumstances, and financial soundness. More detailed information regarding the public offering is available on the Global Maritime Finance website (www.globalmarifin.com).
“Modernizing coastal vessels is essential to ensuring reliable maritime transportation for island residents and making coastal logistics more competitive. The government will continue to support the modernization of aging vessels while offering practical assistance, including joint ordering and customized consulting, so that more shipping companies can take part in the program,” said Kim Hye-jeong, Director General of Shipping and Logistics at MOF.
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