Korea Ocean Business Corp to invest 120 billion KRW in Arctic vessels

The Korea Ocean Business Corporation (KOBC) has launched a new ‘Icebreaking and Ice-strengthened Vessel Investment Program’ to support the commercialization of the Arctic shipping route. The initiative aims to help domestic shipping companies build fleets capable of polar operations, which are essential for utilizing the Arctic route to reduce logistics costs and transit times.

Under the program, KOBC will invest up to 120 billion KRW annually. The corporation will provide subordinated financing of up to 30% of the vessel price, allowing shipping companies to secure up to 90% of the total vessel value through combined senior and subordinated financing. This structure is designed to reduce the burden of upfront capital requirements and mitigate the financial risks associated with high-cost polar vessels.

The program applies to both newly built and used icebreaking or ice-strengthened vessels, including container ships, bulk carriers, tankers, and pure car and truck carriers (PCTC). KOBC President Ahn Byung-gil stated that the program aims to lower the burden of vessel acquisition and enable domestic carriers to respond preemptively to the emerging Arctic market.