2.43 million g/t to be built with 3.3 trillion won

The Maritime Logistics Deputy Minister at the Ministry of Maritime Affairs and Fisheries unveiled the fundamental structure and background of the Ship Investment Corporation (SIC). SIC will be a nominal company, possessing only one vessel and will not be able to obtain its own stocks or apply for loans. Stockholders also will not be able to redeem during its presence.

In addition, if the SIC law is passed, Korea will build 2.43 million gross tons (g/t) of vessels with investment of 3.3 trillion won every year through the SIC.

The draft bill revealed that SIC is going to have only one vessel and permission from the Minister of Maritime Affairs and Fisheries if it is to be involved in the ship investment business. The function of SIC is restricted to building and purchasing vessels, securing funds for building and purchasing vessels, and related tasks. The SIC can borrow money up to less than twice its capital, and vessels will be leased to shipping companies for periods of over two years.

The SIC draft bill will be noticed in July after discussion with related authorities, and submitted to the National Assembly around September. If this bill passes through the National Assembly, it will be enacted from July 2002.

The SIC system has been under consideration since the Asian Currency Crisis. Since the crisis, domestic shipping companies couldn't afford to order even only one vessel, and so the government has been trying since July 2000 to introduce the SIC as part of a line of vessel finance acquisition plans for domestic shipping firms.