Support program grows from 500 billion to 1.1 trillion won
Loan-to-value ratio on vessel-backed loans raised from 60% to 80%
The government has expanded financial support for small shipping companies to 1.1 trillion won ($820 million) and raised the loan-to-value ratio on vessel-backed loan guarantees from 60% to 80%. The expanded program also extends eligibility beyond existing small carriers to include newly designated mid-sized shipping firms and pilotage and towage operators.
The Ministry of Oceans and Fisheries said Monday it will co-host the "Second-Half 2026 Small Shipping Company CEO Conference" with the Korea Ocean Business Corporation in Busan on Tuesday, where participants will discuss the expanded financial support system and strategies for transitioning to eco-friendly, low-carbon operations.
The event will bring together the ministry, the Korea Ocean Business Corporation and representatives from 10 small shipping companies. The government plans to introduce the Second Special Support Program for Small Shipping Companies, which it expanded and began implementing in June, and help firms make use of the available support measures.
The program's total support has grown from 500 billion won to 1.1 trillion won. The loan-to-value ratio cap on debt guarantees for vessel-secured loans has been raised by 20 percentage points, from 60% to 80%. Eligibility has also been broadened from small carriers alone to include newly designated mid-sized firms as well as pilotage and towage operators.
The conference will also address how small shipping companies can respond to the maritime industry's shift toward eco-friendly and low-carbon operations. Expert lectures are planned to help carriers improve management efficiency and strengthen vessel management capabilities.
The Ministry of Oceans and Fisheries has held CEO forums for small shipping companies every six months since 2023. The gatherings are designed to brief smaller carriers — which have less access to policy and market information than large shipping firms — on available support programs and to hear about challenges they face in the field.
The government plans to incorporate feedback from the event into future support policies for small shipping companies and into improvements to the Korea Ocean Business Corporation's financial and non-financial support programs.
Kim Hye-jeong, director general of the ministry's maritime logistics bureau, said small shipping companies are "a vital pillar underpinning the foundation of our shipping industry," adding that the ministry would "continue to listen to voices from the field and actively identify support measures that small carriers can genuinely feel in practice."
adastra@heraldcorp.com
