First Korea shipping fund to make its debut

The first Korea shipping fund, which was set up under the Ship Investment Company act in Korea, will make its debut early next year. Named Korea Marine Fund Corporation (KMFC), it was established early this year with paid-up capital of about $882 million. Daewoo Shipbuilding, STX Shipbuilding, Korea Line and several other companies are major shareholders of the company.

KMFC announced today that it has signed an agreement with Hyundai Merchant Marine to charter a VLCC on a 12-year long-term charter contract. Hyundai Heavy Industries will build the VLCC with delivery scheduled in 2006. KMFC will pay $ 70 million for the ship which will be 333m long, 60m wide and have a depth of 30m.

KMFC aims to secure 46.22 million GT ships by 2020 by attracting $5.5 trillion.