The Korea Trade Insurance Corporation (K-SURE) has signed a $200 million mid- to long-term financing agreement with commodities trading house Trafigura, marking the first time an export credit agency (ECA) has provided financial support based on time charter agreements.
The facility aims to improve Korean shipping companies’ export capabilities, thereby enhancing competitiveness among mid-sized maritime operators in the country’s shipping sector.
Under the arrangement, K-SURE will help cover time charter fees paid by Geneva-based Trafigura to Korean shipping companies as part of the trader’s global freight operations. Trafigura, which charters vessels worldwide, plans to expand its chartering activities with Korean partners.
In mid‑2024, the agency expanded its export credit programmes beyond its traditional focus on capital goods and infrastructure loans (such as shipbuilding and industrial facilities) to embrace financing of consumer goods and services sectors. This expansion aligns with K-SURE’s evolving mandate to support a broader range of exports, including system integration, tourism, technical services, and digital content.
Therefore, for Korean shipping companies, the agreement with Trafigura is expected to further strengthen negotiating positions and operational capabilities in an increasingly competitive global market.
Three banks supported the transaction: Crédit Agricole Corporate and Investment Bank served as the coordinating and structuring bank, alongside Barclays Bank and Singapore’s Oversea-Chinese Banking Corporation.
“This support will be an important turning point for enhancing the competitiveness of the domestic shipping industry,” said Jang Young-jin, president of K-SURE. The agency plans to identify additional overseas charterers and develop financing solutions to support Korean shipping service exports.
Andrea Olivi, global head of shipping at Trafigura, described the facility as demonstrating the company’s “long-term commitment to developing strategic partnerships in Korea”. The arrangement enables closer collaboration with Korean shipping companies while building a more resilient maritime supply chain, he added.
The Korean maritime market: A strategic hub
The facility marks Trafigura’s inaugural ECA financing not directly tied to commodity trading volumes, reflecting an intention to deepen partnerships in key maritime markets; simultaneously, Korean shipping companies seek to expand their presence in global markets following strong performance in recent years. The innovative financing structure could serve as a template for similar arrangements between ECAs and international charterers.
South Korea is dominant in the maritime industry, in terms of shipbuilding, domestic impact, and positioning. As of March 2025, South Korea captured 55% of global CGT orders (CGT, compensated gross tonnage, measures the actual workload in shipbuilding), gaining the top spot internationally. This is due primarily to the country’s focus on clean, tech-driven shipbuilding.
Shipbuilding in recent years has been dominated by South Korea, China, and Japan, who together account for over 90% of the global shipbuilding industry.
For South Korea’s domestic economy, the Port of Busan, South Korea’s largest, is the fifth-busiest container port in the world, handling over 20 million twenty-foot equivalent units (TEUs) annually.
