Korea Development Bank (KDB), South Korea’s largest provider of ship financing, recently signed a memorandum of understanding (MoU) with the country’s Ministry of Oceans and Fisheries to co-operate with overseas port investments.
In a press statement KDB said, “The purpose of this MoU is to boost joint overseas market entry with domestic construction companies and port operators and enhance global competitiveness of the port industry. To achieve this goal KDB and the ministry will work together in terms of digging out and developing new port project in the global market.”
Chaebol-linked construction firms such as Samsung C&T, Hyundai Engineering & Construction, and SK Engineering & Construction, are heavily involved in port construction projects in South Korea and elsewhere.
Local shipping firms Hanjin and Hyundai Merchant Marine are also involved in operating terminals worldwide.
The ministry will choose a project and then negotiate with foreign governments, construction companies, and port operators. KDB will advise on financial matters, arrange financing, and attracting investors.
The two will co-operate in developing overseas port businesses and feasibility studies.
KDB said, “We will advise on financial matters and be in charge of arranging finance for the overseas port business. The ministry, being a port specialist, will lead in developing related businesses. As a result, the MoU aims to get a foothold in overseas markets for domestic players in the port business.”
KDB Financial Group chairman Hong Ki-taek said, “KDB will regard this MoU as being an ideal model that shows a financial institution [that] strongly supports government policy. Also, the MoU will be an opportunity to expand our overseas project financing business.”