Support for conversion to environment-friendly ship

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Support for conversion
to environment-friendly ship

Program in which the government (Ministry of Oceans and Fisheries) provides subsidies within 10% of price for ship owner that demolish or sell old ships and build them as environment-friendly ships.

Provision information

Respond to international environmental regulations by securing environment-friendly ship for National shipping companies
Support for strengthening market competitiveness through fleet efficiency improvement of National shipping companies

Support and conditions

Support and conditions
Classification	Details
Target for Support	National outbound cargo transportation service providers that sign a contract for new builds in the current year and demolish or sell (overseas) old national ships (including BBCHP) within three months of acquiring the ship. However, if budget remains, shipping company that signed a new building contract in the previous year will also be supported (half of the subsidy calculated).
Calculation of subsidy	Old ship GrossTon × KRW 130,000 × Coefficient by ship type
Subsidy limit	Determine according to the current year's budget and project support demand
Responsibilities of recipient	Conclude a new building Contract within three months from the date of determination as a candidate for recipient Contract for demolition or sale of an existing vessel and proof of commencement shall be within three months of the acquisition of new ship build
Selection criteria for recipient	Four quantitative evaluations (aging of existing ships, environment-friendliness of new ships, corporate health, and contribution to related industries), one qualitative evaluation (growth potential), and comprehensive evaluation of addition and subtraction points

Application process

Outbound cargo transportation service providers↑Korea Ocean Business Corporation:①Submission of business application
Korea Ocean Business Corporation↔Judging Committee:②Judging on selection of recipients
Governmental Agency (Ministry of Oceans and Fisheries)→Korea Ocean Business Corporation:③Determination of final support recipients and subsidy issuance
Korea Ocean Business Corporation↓ Outbound cargo transportation service providers:⑤Subsidy payment
Outbound cargo transportation service providers↔Shipyards:④Environmental-friendly ship building contract
Ship demolition companies and overseas shipowners (Buyer)↔Outbound cargo transportation service providers:④Old ship demolition (sale) contract