Credit assurance program

Shipping Business Management Support (including COVID-19)

Credit guarantee

The project provides guarantee support for fulfillment of corporate debt so that shipping companies with insufficient credit or collateral can get loans from financial institutions for emergency working capital financing. However, the project is provided only in cases specified in Article 7.1 of the Enforcement Decree of the Korea Ocean Business Corporation Act.

Feature and Benefit

  • To ensure corporations with public trust (credit rating AAA) can easily procure necessary business funds from financial institutions by supplementing insufficient credit.
  • Lowering procurement costs for shipping companies that were unable to procure due to poor credit ratings or procured at high interest rates

Main guarantee conditions

Main guarantee conditions
Guarantee beneficiary Creditors of main debt contract (financial institution that handles loans)
Guarantee period Within 1 year from the date of guarantee issuance
Guarantee amount Guaranteed amount × Guarantee ratio (determined according to company's financial condition)
Guarantee rate Calculated based on the basic rate by credit rating, rate of special terms and conditions, and factors of
discounts and premiums
Guarantee debt The amount equal to the unpaid principal multiplied by guarantee ratio and amount equivalent to
unpaid interest.
Bond conservation Subrogation rights to the debtor

Guarantee structure diagram (examples)

Flow chart of credit guarantee

Guarantee structure diagram