KEXIM provides $135 million in ship financing to HJ Heavy Industries; mid-sized shipbuilders and eco-friendly vessels are key priorities

[Financial News] The Export-Import Bank of Korea (KEXIM) said on the 15th that it had provided a total of $134.67 million (about 181.5 billion won) in ship financing to HJ Heavy Industries, a mid-sized domestic shipbuilder.
The vessels receiving KEXIM ship financing are two 8,850-TEU container ships built to the “Methanol Ready” specification (one TEU is one 20-foot container). “Methanol Ready” refers to ships designed and built so they can later be converted to run on methanol, an eco-friendly fuel. HJ Heavy Industries secured orders for the two ships from overseas shipowners. They are scheduled for delivery in August and October 2027, respectively.
To support HJ Heavy Industries’ ship exports, KEXIM provided some of the required funding through direct loans, while commercial banks lent the remainder backed by KEXIM guarantees. A KEXIM official said, “As competition for orders with Chinese shipyards intensifies, there is a need to provide overseas blue-chip shipowners with an incentive to place orders with mid-sized domestic shipbuilders,” adding, “We will continue to actively support efforts to enhance their competitiveness in securing orders through tailored policy financing for mid-sized domestic shipbuilders.” KEXIM provides domestic shipbuilders with around 12 trillion won in ship financing annually, focusing on strengthening support for mid-sized shipbuilders and financing eco-friendly and high-value-added vessels. Financing needs for mid-sized shipbuilders are also growing as vessel prices rise amid expanding regulations on eco-friendly and high-value-added ships. Earlier, last March, KEXIM had provided about $115 million for Daehan Shipbuilding’s eco-friendly crude oil carriers and petrochemical carriers.

[email protected] Jo Eun-hyo Reporter