Corporate Information

₩310 billion in early repayments; only ₩30 billion debt remains

Additional long-term contract signed with Vale, new business ventures underway

Polaris Shipping, having secured stronger financial stability through the early repayment of loans, is now actively pursuing business expansion.

The company announced on the 8th that its holding entity, Polar Energy & Marine, has repaid ₩60 billion early from a loan it borrowed from Meritz Securities in September last year.

Out of the ₩340 billion total loan, Polaris repaid ₩70 billion at the end of last year, ₩180 billion in March this year, and another ₩60 billion this time—bringing total early repayments to ₩310 billion. As a result, the outstanding balance has been reduced to just ₩30 billion. Although the loan maturity with Meritz runs until September next year, Polaris Shipping plans to repay the remaining balance as soon as possible.

Thanks to the faster-than-expected repayment, the company has significantly improved its financial soundness and stabilized its governance, paving the way for business expansion. A Polaris Shipping official stated, “With the early repayment, management has secured an independent decision-making structure free from external influence, allowing us to focus on strategic growth.”

In fact, as its management stabilized, Polaris signed a $300 million five-year iron ore transport contract with Brazil’s mining major Vale in June, followed by another $270 million five-year contract this month. Both contracts, covering 2026–2030, will see dedicated Newcastlemax bulk carriers transporting iron ore from Brazil to China, generating stable revenues from 2026 onward.

Having built a strong relationship with Vale through multiple long-term contracts based on its large VLOC fleet, Polaris Shipping is now reinforcing ties with the miner while expanding its scope.

Beyond Vale, Polaris is considering acquiring vessels tied to long-term contracts currently owned by domestic private equity funds, aiming to diversify its customer base. The company also plans to acquire tanker tonnage to complement its bulk-focused portfolio.

In addition, Polaris is exploring investments in offshore wind-related vessels such as WTIVs and AHTSs, positioning itself in the eco-friendly marine infrastructure sector. It is also preparing to participate in Arctic shipping route development as part of its strategy to secure future growth drivers through new businesses.