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HJSC “activating shipbuilding industry through blockchain-based ship finance”
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CategoryNews Date2022-10-27 |
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- Presented <Collaboration of shipbuilding industry and blockchain technology> in BWB 2022 Conference hosted by Busan Metropolitan Government - Drawing attention by proposing the new direction for activating shipbuilding industry and ship finance using STO for the first time in shipbuilding industry
On the 28th, HJ Shipbuilding & Construction(CEO:Hong Mun-gi) proposes the new direction for activating shipbuilding industry under the theme ‘Collaboration of shipbuilding industry and blockchain technology’ in BWB 2022 Conference(Blockchain Week in Busan) hosted by Busan Metropolitan Government.
BWB 2022 is the global blockchain event held in BEXCO for 3 days from Oct. 27 to 29 following NFT Busan 2021 held last year. NFT Busan 2021 was very successful with more than 10,000 visitors last year. then, it is expected that BWB 2022 will be also the valuable opportunity to exchange information and identify the trends in blockchain industry this year.
The presentation will be given by Vice President Yoo Sang-cheol of HJ Shipbuilding & Construction(HJSC). Vice President Yoo, the chief executive officer leading management and planning in HJ Shipbuilding and Construction, successfully completed financing by establishing the ship fund for the first time in Korea. Thus, Vice President Yoo is recognized as the experienced expert in both shipbuilding and ship finance field.
While shipbuilding industry ranked 5th among the export industries in Korea with export of 29.1 Billion USD in 2021, HJSC proposes the new direction of shipbuilding industry in Korea in blockchain era which focuses on the current status of shipbuilding industry in Korea facing diverse kinds of difficulties, practical financing approach of ship finance using STO(Security Token Offering) based on blockchain and innovation effects influencing on a wide range of front and rear industry
STO(Security Token Offering) is a digital token which is issued on the basis of traditional assets including business, real estate, artworks or securities. As discussion on the introduction of STO using blockchain technology is recently accelerated, STO is highlighted on the aspect that individuals or organizations can split ownership of a ship by tokenizing the rights on ships or other assets.
While ships were ordered to a shipbuilder using assets of a shipowner and loan from financial industry, STO based on blockchain technology enables small-scale diversified investment and the means of financing become diversified. Although shipbuilding industry has to spend over 90% of finance required for shipbuilding but gets the balance equivalent to 60% of a ship cost even after delivery of a ship up to now, it couldn’t avoid financial difficulty until the delivery of a ship.
When ship investment using STO becomes activated in the near future, a shipbuilder can build a ship without any financial difficulties and strengthen its competitiveness by securing the cost for shipbuilding. Furthermore, STO will substantially contribute on development of relevant industries by increasing jobs in shipbuilding yards in Korea as well as securing cargo volumes of a shipowner.
For Busan promoting the global blockchain city and special marine financing hub, acceleration of the establishment of digital asset exchange using STO platform and relevant systems will be good news. Actually, all the world has been implementing STO for a wide range of assets including diverse kinds of artworks, securities and real estate. In particular, it has been continuously proposed to activate the ship financing ecosystem which enables the diversified investment by the private sector because participation of conventional financial institutes including banks has been declining since the financial crisis in 2008. An official of HJSC pointed out that STO for ship financing could create a new opportunity for overall shipbuilding industry and shipping industry by securing convenient and safe transaction through small-scale diversified investment. The official also estimated that the new territory would be opened for the shipbuilding industry in Korea when supply of jobs is stabilized through the development of blockchain-based digital business model and financial instruments. |
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