Korea Shipowners' Association signs MOU with Shinhan Bank for eco-friendly vessel financing

The Korea Shipowners' Association signed an MOU with Shinhan Bank at the association's main conference room on Monday, announcing Tuesday that the two organizations will work together to support the transition of Korean-flagged fleets to eco-friendly vessels and promote mutual growth between the shipping and financial sectors.

Korea Shipowners' Association Chairman Park Jeong-seok and Senior Executive Vice President Yang Chang-ho attended the signing ceremony alongside Shinhan Bank President Jeong Sang-hyeok and Deputy President Lee Jong-gu.

The agreement is designed to build a cooperative framework that draws on Shinhan Bank's specialized maritime finance capabilities in the southeastern region — including its Shinhan SOL Cluster Busan — to facilitate ship financing for Korean-flagged carriers and expand financial support for member companies.

Under the MOU, the two organizations plan to pursue the following in stages: ship financing support for Korean-flagged carriers to acquire eco-friendly vessels; exploration of financial support measures for mid-sized and small shipping companies; joint development of tailored financial products and services reflecting the characteristics of the shipping industry; preferential financial services and professional financial consulting for association members; and the establishment of a working-level consultation framework for shipping-finance cooperation.

"The transition of Korean-flagged fleets to eco-friendly vessels is urgent to meet the International Maritime Organization's 2050 carbon neutrality target, yet domestic private financing accounts for only 7 percent of the total," Park said. "I hope Shinhan Bank's financial support will serve as a catalyst to improve conditions for Korean carriers to place vessel orders with domestic shipyards, and become a genuine starting point for mutual cooperation that revitalizes small and medium-sized shipbuilding and equipment companies struggling with a weakening manufacturing base, as well as the regional economies of Busan, Ulsan and South Gyeongsang Province."

Meanwhile, the Korea Shipowners' Association has been continuing a range of support activities to promote safe vessel operations in line with rapidly changing market conditions. Most recently, it conducted a pre-boarding job competency training program for about 30 Indonesian maritime officers at a maritime university in Jakarta, Indonesia, ahead of their assignments aboard vessels operated by Korean shipping companies.