Operation of National Essential Ships

Shipping policy business operation

Operation of National
Essential Ships

Designation and operation of National Essential Ships (88 ships) in accordance with the 「ACT ON MAINTAINING MARINE TRANSPORTATION AND PORT FUNCTIONS」 for stable transportation of strategic goods and reliable employment of korean crew in case of emergency, wherein the government compensates shipping companies’ wage burden.
KOBC accepts applications related to designation and operation of National Essential Ships and entrust with calculation and payment of compensation for loss and training on National Essential Ships

Feature and Benefit

  • Designate and operate National Essential Ships to maintain marine transportation and port functions in the event of war, incidents and other emergencies
  • Limiting the numbers of foreign crew on National Essential Ships, contributes to the increase in employment of korean crews, and the government provides compensation
    for increase in wages.

Key details

Key details
Target vessel Ships with international gross tonnage of 10,000 tons or more
Obligation Measures within six foreign crew members after designation of National Essential Ships
  • compensation for loss caused by difference in wages between Korean and foreign crew
  • Partially reduce port facility usage fee (ship entry/departure fee)
Payment terms of
compensation for loss
  • Full annual compensation in case of more than 320 operating days per year
    * However, newly designated ships are counted from the point of compliance with criteria for limiting foreign crew
  • For operation of less than 320 days, payment shall be made in proportion to the actual number of operating days based on 320 days

Application process

Application process