Ship fund draws shipbuilding firms

The first Korean 'Ship Fund' to set up this year is expected to pull domestic shipbuilding companies such as Daewoo Shipbuilding Marine Engineering (DSME) and Samsung Heavy Industries.

The Ministry of Maritime Affairs and Fisheries and shipbuilding firms said that Korea Investment Trust Management & Securities (KITC) is pushing to launch a Ship Fund Company with a consortium by year's end as the ship investment law was promulgated at the end of September.

The Ship Fund will collect money from general investors to build vessels. Then it will pay a dividend with vessel charting fees, expected to boast 300 billion won capable of building 6 vessels including 7.8 billion won from investing companies.

Up to now, several shipbuilding companies such as DSME, SHI, the STX corporation, National Federation of Fisheries Cooperatives, ChoKwang Shipping, and Shinsung Shipping sent a Letter of Intent, taking 80% of total shares.

Shipbuilding companies may not express huge expectations because of the fund amount. However, they are expecting to get potential customers from the fund.

Hyundai Heavy Industries decided not to get involved, judging that it is not efficient.

An insider at MOMAF said the establishment was delayed to the middle of December from mid-November in the wake of adjustment of stock shares amongst investing companies, though it was already ready legally.