Sub-standard vessels swinging in near seas

Sub-standard vessels flying a "Flag of Convenience" are operating in Korean, Chinese, and Japanese near sea trade routes, making trade for legitimate companies more difficult.

These vessels dexterously utilize open and liberal government policies, depriving regular shipping companies of cargoes and much needed business.

Taking advantage of these open and liberal maritime policies, some Korean people purchase cheap, worn-out vessels from Japan and Hong Kong. They usually establish a paper company in Flag of Convenience countries such as Panama, Cambodia, Honduras, or Belize, registering themselves as international shipping agencies in Korea and operating vessels in rarely inspected Port State Control (PSC) between Korea and Japan, and Korea and China.

Especially, they save on operating costs by hiring foreign sailors below set guidelines, dodging standard labor costs and reaping tax exemption benefits. These savings are usually reflected in lower operating costs that regular shipping companies simply cannot compete with.