Seoul: The chief of the country's financial regulator announced Thursday that local insurers and financial firms will extend full support to small and mid-sized shipping companies impacted by the ongoing conflict between the United States and Iran in the Middle East.

According to Yonhap News Agency, Lee Eog-weon, chairman of the Financial Services Commission (FSC), held a meeting with executives from leading shipper HMM and other shipping companies. During the meeting, Lee confirmed that local insurers are prepared to offer war risk insurance for 10 Korean vessels stranded in the Strait of Hormuz since late February due to the heightened tensions.

Lee emphasized that local insurers would offer lower and more reasonable insurance rates to shippers who have been denied war risk insurance and are facing higher rates compared to larger shipping companies. This move is aimed at alleviating the financial burden on smaller shipping firms.

Additionally, the FSC chief announced that the state-run Korea Asset Management Corp. (KAMCO)-led fund for ship purchase-financing would continue its support for smaller shippers. Furthermore, a loan-to-value ratio for eco-friendly ship purchases will be reduced by 10 percentage points to 80 percent, providing further assistance to these companies.