South Korea is strengthening its global logistics presence while accelerating the shift toward eco-friendly vessels. As part of this effort, the Korea Ocean Business Corp (KOBC) has opened its first overseas office in Singapore to support the international expansion of domestic shipping and logistics companies. Alongside this, the organisation is promoting new tax measures to encourage the adoption of greener fleets, a key step toward improving national logistics competitiveness.
KOBC Opens Singapore Office to Boost Global Expansion
The KOBC, established in 2018 to revitalise South Korea’s shipping sector after the collapse of Hanjin Shipping, has taken a major step by opening its first overseas branch in Singapore. The choice of location is strategic Singapore is a global maritime and financial hub and a key centre for Asian currency-based funding.
The new office will offer direct support for South Korean shipping and logistics companies operating abroad, while also identifying investment opportunities in Southeast Asia. To strengthen financial cooperation, KOBC signed an MoU with DBS Bank during the opening ceremony. This partnership aims to diversify funding channels beyond US dollar-based financing by exploring local currency bond issuance and developing sustainable financial products using DBS’s ESG expertise.
Looking ahead, KOBC plans to open an office in New York in 2026, followed by future expansions to major global hubs including London, further strengthening South Korea’s international shipping network.
Push for Eco-Friendly Vessels Through New Special Tax Measures
While global shipping steadily transitions to greener fleets, South Korea’s progress remains slow. By the end of 2024, eco-friendly vessels made up 19.5% of the global fleet, compared to only 7.1% in South Korea. To close this gap, KOBC is advocating for special tax incentives that would reduce the financial burden of building eco-friendly ships.
The proposal includes tax credits and accelerated depreciation to encourage faster investment in green vessels. A preliminary feasibility request has already been submitted to the Ministry of Economy and Finance. The plan aims not only to support shipping companies but also to stimulate growth in shipbuilding, green fuel infrastructure, and private financial participation areas currently dominated by foreign institutions and policy banks.
South Korea’s dual strategy global expansion through the KOBC’s overseas offices and encouraging greener fleets through special tax measures reflects a forward-looking vision for its maritime sector. By strengthening international financial networks and pushing eco-friendly investments, the country aims to enhance its competitiveness, support sustainable shipping, and secure a stronger position in the future logistics landscape.
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Source: Lloyd’s List
