First vessel investment firm coming soon

The first vessel investment company in Korea is expected to launch next March at the earliest.
The Korea Vessel Operation Co., revealed on Dec. 8 that it agreed with Hyundai Merchant Marine to sign on a long-term charter for a super-sized oil tanker with the best use of the Vessel Investment Company System.
This 300,000 dwt ,tanker which is still under construction by Hyundai Heavy Industry, will be purchased by the Vessel Investment Company at a cost of $70 million and be chartered to Hyundai Merchant Marine for more than 5 years.
If the procedure goes well, the first vessel investment company will be established since the vessel investment law was promulgated in September 2002, and the first Vessel Fund Operator, Korea Vessel Operation, launched last February.
The vessel investment company system pays a dividend to investors after it builds or purchases a vessel with money from private investment and financial investments and charters vessels to shipping companies for profit.
Under the current law, a vessel investment company can possess only one vessel and will be cleared as soon as the charter expires.
An insider from Korea Vessel Investment said that he wishes to prepare opportunities for private investors to be part-owners of huge vessels by investing small amounts of money.