The South Korean government is planning a KRW 800bn ($707m) cash injection into Hyundai Merchant Marine (HMM) this year.
The Yonhap news agency cited unidentified industry officials as saying state-run Korea Development Bank (KDB), the shipping company’s biggest shareholder, and Korea Ocean Business Corp (KOBC), could buy KRW 400bn of bonds each from HMM.
An unidentified official at KOBC said details will be announced “soon.”
Last week it was reported that HMM is likely to receive state financial guarantees worth KRW 6 trillion to fund its 20-ship newbuilding programme.
Hwang Ho-Sun, president of state-controlled KOBC, told the Edaily website that his company is considering the support plan for the domestic shipowner.
"If the decision is made at the ministerial-level meeting, the support process will be carried out as early as this month," he added.
The cash would go towards 20 containerships HMM has confirmed at Hyundai Heavy Industries (HHI), Samsung Heavy Industries and DSME, plus terminal operations and containers.
DSME and Samsung are building seven and five 23,000-teu units for HMM respectively, with delivery in the second quarter of 2020.
HHI will construct eight 15,300-teu units for handover in the second quarter of 2021.
The total order will cost KRW 3.15 trillion, HMM has said.
