South Korean company Hyundai Merchant Marine (HMM) is set to become the first beneficiary of a Korean government rescue scheme according to Pulse.
The sum of USD $515 million will be paid to HMM as part of the countries new Korea Shipping fund. The government entity launched on Tuesday (January 23) with an intention to rebuild the shipping and shipbuilding industry after the infamous collapse of Hanjin Shipping.
The investment is seen as a government strategy to place HMM in the vacant space left by the untimely departure of Hanjin. It is believed that the fund will provide sale and cheap leaseback deals for HMM, as well as providing investment in HMM bonds.
Commenting on the funding plans, a government official said “We are coordinating the funding plan upon specific support request from HMM. The rest would spread out to other shippers”.
In related news, HMM recently announced its intentions to buy a 20% stake in Total Terminals International (TTI). TTI operate terminals at the Port of Long Beach and the Port of Seattle.