The South Korean government has approved a major investment in the recently launched state entity, Korean Ocean Business Corporation. In detail, the country's finance ministry has recently said that KRW1.35 trillion (US$1.2 billion) in-kind investment would be made into the new company through stock contribution.

The ministry's statement shows that 12.7 percent stakes in South Korea's four port authorities would be contributed to the Korea Ocean Business Corporation.

The state entity, established earlier in July, was aimed at supporting the local shipping industry. Specifically, the entity would focus on supporting the country's five-year plan for the revitalization of its struggling shipping industry with the construction of about 200 ships in the next three years.

The entity was officially launched in Busan with an initial capital worth KRW3.1 trillion. In addition, the country's government plans to invest KRW200 billion into the agency.