Korea Asset Management Corporation (KAMCO), which manages ship funds with structural adjustment fund, is to purchase additional 11 ships from small-and-medium shipping companies with bad liquidity.
KAMCO revealed on September 29th, "On account of slow recovery of shipping market and spread of liquidity crisis, ship purchasing request increases. Thus, we made a decision to buy 11 ships by the end of this year."
KAMCO is known to have signed term sheets for 11 vessels from six shipping companies out of 36 ships from 10 companies, which applied ship purchase by August 18th.
It plans to buy economically feasible ships of low-loaned or long-term contracted through inspection.
This round of purchase is focused on small-and-medium shipping companies which are urgently in need of fresh liquidity.
Five bulkers, three boxships and two tankers totalling KRW 320bn ($286m) will be purchased.
However, since term sheet carries no legal binding, purchase or related conditions can be altered.
KAMCO plans to complete ship purchase by the end of this year after discussion on detailed conditions with shipping companies.