KMFC receives permit for ship purchase

The Korea Marine Fund Corporation announced Feburary 2, "We received a permit to invest in the ship business from MOMAF, and will raise the funds in the middle of next month through Daewoo Securities Co., Ltd." The funds will be for a 0.3 million dwt oil tanker being built by HHI (Hyundai Heavy Industries). The ship investment company will purchase the vessel for 80.4 billion won and hire out it to HMM (Hyundai Merchant Marine) on a long-term basis.
The company will raise 16.1 billion won, 20 percent of the ship's price, from private investors, and take out loans for 70 percent from the Export-Import Bank of Korea and the Industrial Bank of Korea. The remaining 10 percent will come from HMM.
Investors in the fund will be guaranteed an earning rate of 6.5 percent for 7 years, which will translate into a guaranteed earning rate of 8 percent after tax exceptions and tax-free benefits for investments below 3 billion won and other tax benefits for investments over 3 billion won.
One insider from MOMAF said, "This ship investment company system is the first in Asia," and added "Investors will enjoy high earnings and tax-free benefits with the chance to be a ship's owner."
The ship investment company system builds and purchases ships with private capital and loans before hiring out the ship to a shipping company. It pays dividends on the profits to investors. The company then liquidates itself with the termination of the charter contract and must have only one vessel according to the current law.