South Korea’s Financial Services Commission has announced that it would allocate KRW820bn ($693m) to help domestic owners to modernise their fleets, South Korean media Yonhap reports
The financial package aims to support smaller shipowners to build 59 new ships in total, comprising of 38 cargo ships and 21 passenger ships.
Under the plan, shipping companies will be reimbursed for up to 60 percent of the cost of the newbuildings and the state-run Korea Ocean Business Corp will guarantee more than 95 percent of the loans.