Established under MOF by integration of three existing organizations;

① Korea Maritime Guarantee Insurance,

② Korea Shipping and Maritime Transportation, ③ Maritime Exchange Information Center

Vision Business objectives

“Korea,

the Global Top 5 Shipping Country”

To secure dry bulker capacity of 5 million DWT

To secure container capacity of500,000 TEU

To introduce industry-recognizedKOBC shipping index

Main Tasks

Expand Target/Scope of Investment&Guarantee Business

Serve as the Safety board and Catalyst

for the market

Expansion of Support Programs

for maritime Transportation

Expanding

Maritime

Infrastructure

Strengthening

Investment/

Guarantee

Business

CEOAuditor

RiskManagementDept.

Singapore Branch

London BranchSeoul Office Audit Dept.

Ocean Investment Division

Innovative Management Division

Ocean Guarantee Division

Management Planning

Dept.

Appraisal Evaluation

Dept.

Maritime Exchange

Information Center

Investment Planning

Dept.

Investment Mgmt. Dept.

Guarantee Planning

Dept.

Guarantee Mgmt. Dept.

Board of Directors

Structure

3 Business Divisions, 9 Departments

79 Employees

Scheduled to hire additional 27 employees

in Dec. 2018)

Article 11-1 of

KOBC introduces maritime transport market with various services

necessary for the industrial growth

AS-IS

Ships, Scrubber & BWTS,Container Boxes, Port Terminal, etc.

60

Bulker,Tanker, Container

Purchase of Defaulted Ships, etc.

Box Manufactures SPC Syndicated Lenders

Manufacturers in China KOBC Subsidiary

A : Arrangers

Container Carriers

B : Commercial Banks

100% Equity

Container Box

Purchase Agreement

Box Management Agreement

Box Manager

International Lease

Company

10% Loan(Uncovered)

Tranche B

(2nd Mortgage)

GuaranteeOperating Lease

Agreement

30% Loan(Uncovered)

Tranche A

(1st Mortgage)

30% Loan(Covered)

Tranche C

(3rd Mortgage)

30% Loan(Uncovered)

Tranche D

(4th Mortgage)

1

2

Bond Guarantee Program: Use of liquidity in capital market

Performance Guarantee Program: Expansion of guarantee scope

Lenders

Loan Repayment

Shipping CompanyBond issuance

Bondguarantee

Investor

Korea Ocean Business Corporation

Option toissue bondto shipping company

Bond subscription

Loanguarantee

Lenders grant ship finance covered by KOBC to shipping company

Financial Guarantee Performance Guarantee

NaturePayment guarantee forthe loss caused by loan

default

Guarantee for the performance of

charterer’s obligation under charter contract

TypeLoan guarantee for

senior and junior loans, etc.

Bid bond and performance bond

Lossratio

High (91.7%) Low (65.3%)

Shipper requests the shipping company to provide bid bond when the bid for long term COA is opened

Shipping company has an option to issue bond in the capital market before delivery of vessel

Pre-payment of ship finance if bond is

issued (Bond pricing < Shipping finance pricing)

KOBC starts performance guarantee business with bid bond after revision of the KOBC Act, <Scope will be gradually expanded>

Cooperation with government-owned

financial institutions(KDB, KEXIM)

Utilization of guarantee and investment activity of KOBC

Attract private financial institutions into ship finance market

Safety board

Of Shipping

industry

Prepare eco-friendly facility support programs including scrubber

Develop forward freight agreement which is the risk management tool for shipping transaction

Develop new guarantee products such as bond guarantee and performance guarantee

Expand financial support for securement of logistic hub in major international ports

Provide financial data and knowledge accumulated with shipping transaction, such as big data

Strengthen the function of Tonnage Bank by establishing a subsidiary