Corporate Information

Sailing forward the smart way Over the last two decades, Polaris Shipping has built up a solid reputation and an impressive fleet that has helped it develop into one of Korea’s leading bulk carrier owners and operators with one of the largest VLOC fleets worldwide. COO D. H. Kim and General Manager D. M. Rhee discussed the company’s latest developments, in conversation with Imogen Ward. … Ever since it was founded in 2004, Polaris Shipping has operated with a clear vision of becoming a trusted carrier of large-scale dry bulk cargo. In order to see this to fruition, the company implemented a brave but bold strategy. “While many owners pursued short-term gains, we deliberately offered long-term capacity at responsible, sustainable rates,” explained General Manager D. M. Rhee. “This approach created a true win-win situation: cargo owners secured stability in a volatile market, while Polaris built a reputation for foresight and reliability.”   The journey to success Polaris has been operating to an exceptional standard ever since, gradually expanding its capabilities with the integration of Capesize and Newcastlemax vessels into its fleet. Thanks to this continual growth, the company now transports a total annual volume equivalent to around 10% of the entire seaborne trade of Korea. The company offers long-term COA contract services to major global charterers such as Vale, Posco and Hyundai Steel, specialised in VLOC operations and broader dry bulk services. “The decisive moment came when we pioneered the adoption of converted VLOC’s for Vale, one of the world’s largest mining companies, at a time when vessel supply was extremely limited and freight rates were at historic highs,” added Mr Rhee. “Today, Polaris operates one of the world’s largest VLOC fleets, utilising its prior experience to anticipate market shifts, acting decisively and transforming challenges into enduring advantages.” The company has also diversified its fleet with the addition of two LR2 (Long Range) tankers, a move that enhances its operational flexibility and broadens its service capabilities into wet bulk. These vessels with coated cargo holds, designed for the efficient transportation of refined petroleum products and other liquid cargo, offer access to new trade routes and markets. The inclusion of LR2 tankers not only strengthens the company’s ability to meet the evolving demands of its customers but also supports its long-term strategy of building a more versatile and resilient fleet portfolio. “We are also evaluating additional MR2 (Medium Range) tonnage to further broaden our service range,” explained COO D. H. Kim. “This diversification will help us as we explore more opportunities within the gas sector, relating to LNG and LPG, while also placing us in a better position for answering future opportunities in energy logistics and offshore wind energy.”   Green developments Although the topic of greener energy is prevalent across the entirety of the maritime industry, it is especially relevant for Polaris, which prides itself on going above and beyond for sustainability.   Polaris has worked hard to integrate green values into the very heart of the business, prioritising sustainable practices, energy efficiency and innovative solutions that reduce environmental impact across all operations. “Through our R&D efforts, we provide clients with optimised solutions tailored to their routes that help reduce logistics costs,” continued Mr Kim. “We also maintain strict financial and governance disciplines, allowing our partners to place long-term trust in us.” The company also understands that shipping is a collaborative industry driven by the people. For that reason, Polaris prioritises safety, crew training and talent development in order to ensure operational continuity and resilience. Mr Kim, in particular, highlights field-based project management and considers human capital the most critical element in strengthening the company’s organisational systems and culture. “In short, sustainability for us means efficiency, transparency and people – elements that make us credible today and prepare us for tomorrow,” shared Mr Rhee. “It is not a separate initiative, but a business imperative. “With this in mind, we have also committed to renewing our fleet; replacing older vessels with more energy-efficient designs and incorporating more advanced technologies into our existing ships. We are researching autonomous navigation and unmanned vessel technologies. “These are not symbolic moves; they directly strengthen our ability to serve partners consistently while preparing for the industry’s long-term transformation.” While implementing its strategic renewal programme, Polaris also intends to increase its fleet numbers to better diversify its customer base and business portfolio. “We focus on accurately understanding our clients’ needs and providing fundamental solutions through continuous R&D,” said Mr Kim. “In order to continue to meet the evolving needs of our customers, we are investing in disciplined fleet renewal and capability building. We are selectively committing capital to large vessels in our core Capesize-VLOC segments, while executing energy-saving strategies and digital upgrades across the fleet.” These developments will be key to further enhancing Polaris’ position within the maritime industry, while also improving the company’s commitment to sustainability.   Inspiring partnerships Such impressive capital investment would not be achievable without the support of a strong supply chain, and, like any good business, Polaris understands that success is built on partnerships. “From global charterers and shipyards to financial institutions and technology providers, every part of our success has been achieved together with our partners,” shared Mr Rhee. “We view these relationships not as transactions but as collaborations that create long-term value. “The trust we have built with major cargo owners over decades is what allows Polaris to operate with confidence, expand our fleet and execute large-scale shipbuilding and retrofit programmes. Our financial partners, in turn, provide the capital solutions that make these investments possible. In short, Polaris would not be where it is today without the strength of its partnerships.” As it looks to the future, Polaris intends to continue working alongside its partners to build a better, stronger business. “Our long-term vision is simple: we want to build a company that can last for more than a century,” said Mr Kim, in conclusion. “This requires more than survival; we must continue to strengthen our competitiveness by expanding into areas of future demand and nurturing a culture that can endure across generations. “This means maintaining leadership in large-scale dry bulk shipping, while diversifying into complementary sectors. It also means building on the trust of our partners to create a stable, profitable business that sustains us through cycles. “Polaris’ story is still in progress. Over the past 20 years, we have established ourselves as a leader in VLOCs and built a strong financial and operational foundation. But the next stage will be about transformation, broadening our portfolio, adapting to global energy transitions, and reinforcing our commitment to sustainability and safety.” 

– Awarded Tower of "USD 700 Million Exporter" on the 62nd Trade Day (by KITA & MOTIR)–Polaris Shipping Co., Ltd. (CEO Han Hee-seung), the third-largest dry bulk shipping company in Korea, is a specialized operator of Very Large Ore Carriers (VLOCs) dedicated to iron ore transportation. The company provides stable logistics services through long-term Contracts of Affreightment (COA) of up to 25 years with global industry leaders, including Vale of Brazil, the world’s largest iron ore producer, and POSCO, the world’s fifth-largest steelmaker.More than 90% of Polaris Shipping’s fleet has been ordered from domestic shipyards, contributing significantly to the strengthening of Korea’s core national industries and shipbuilding competitiveness.Over the past four consecutive years (2021–2024), Polaris Shipping has recorded annual sales exceeding KRW 1 trillion. Despite the decline in global ocean freight rates, the company achieved outstanding export performance over the past three years, with USD 860 million in 2022, USD 740 million in 2023, and USD 730 million in 2024, totaling more than USD 2.3 billion in exports.The company’s major export markets include Brazil (68%), Australia (14%), and the United States (6%). By operating long-haul routes, Polaris Shipping has established a business structure that maximizes transportation revenue per distance. The company also enhances cost competitiveness by optimizing sailing speed and routes in real time through advanced operational systems.Beyond maritime transportation, Polaris Shipping is expanding its business portfolio into eco-friendly smart transportation platforms and marine infrastructure. The company is securing future growth engines in marine-based new and renewable industries such as offshore wind power, Arctic shipping routes, and floating data centers. Through continuous R&D investment, it is responding proactively to the global energy transition. In addition, the company is strengthening vessel safety by replacing aging ships with newbuilds and conducting regular maintenance.In line with the International Maritime Organization (IMO) 2020 environmental regulations, Polaris Shipping adopted low-sulfur fuel at an early stage and installed exhaust gas cleaning systems (scrubbers) on all vessels, leading industry efforts to reduce sulfur oxide emissions.

Early repayment of parent company loans, easing the burden of high dividends... New long-term contracts, securing a stable growth footholdPolaris Shipping's financial and business uncertainties seem to be gradually resolved. First, the risk of massive cash outflows was eased as Polar Energy & Marine (Polar E&M), the parent company of the company, paid back most of the funds raised by Meritz Securities. In addition, as Polaris Shipping has won a large-scale long-term contract, it is expected that stable profit-generating power will be maintained and efficient working capital management will be possible.◆ Granting credit rating of unguaranteed bonds 'BBB / Stable'... Polar E&M borrowing repayment 'main effect'According to related industries on the 16th, NICE Credit Rating (NICE Rating) rated Polaris Shipping's credit rating for unguaranteed bonds as 'BBB (stable),' while its corporate bill and short-term bond ratings remained at 'A3'. In detail, NICE Investors Service viewed Polaris Shipping positively as having a stable business base centered on long-term transportation, having excellent operating profitability based on a stable fare structure of the cost compensation method, excellent EBITDA creation, and improving free cash flow due to the sale of its ships.Polaris Shipping, the nation's third-largest shipping company in terms of capacity (DWT), is a mid-sized shipping company established in 2004 and operates a fleet consisting of large bulk carriers such as VLOCs. The company has generated fixed sales and profits by signing long-term transportation contracts with Brazilian mining company 'VALE'.The industry cites the early repayment of loans from Polar E&M, the largest shareholder, as the main reason why Polaris Shipping received an "investment eligibility" rating. Earlier, Polar E&M raised 250 billion won worth of long-term loans from Meritz Securities in September last year. It has a high interest rate of 12.5%, and the maturity is two years until September 2026. When Polar E&M raised its borrowings, Polaris Shipping also posted BWs worth 90 billion won.The total cash raised by the two companies from Meritz Securities is 340 billion won, but at this point, about a year later, the remaining balance is only 30 billion won. More than 88% of the loan was repaid early. If Polar E&M and Polaris Shipping simply estimate that they will repay at maturity, they will have to pay a total of 80.5 billion won in interest over two years. However, Polar E&M repaid 180 billion won in March this year and then shook off an additional 60 billion won in August this year, and Polaris Shipping also repaid a significant amount.Polar E&M's reduction in borrowing is leading to the creation of a stable business environment for Polaris Shipping. This is because Polaris Shipping, which pays high dividends as its parent company, is the actual repayment entity for the loan. The financial resources of the loans Polar E&M repaid in March this year are dividends collected from its subsidiaries. Polaris Shipping paid 280 billion won in interim dividends and 230.6 billion won in settlement dividends last year, totaling 510.6 billion won. If it is substituted for Polar E&M's 94.14% stake, it is estimated that it has received about 480 billion won. Furthermore, it is widely expected that governance risks will be resolved, given that Polar E&M has set its current Polaris Shipping shares as collateral for borrowing.◆ Long-term contracts with an average of 11 years left, stable profits... Fuel cost conservation and new contracts 'competitiveness'As of the end of last month, Polaris Shipping has a total of 34 long-term operating ships, including 27 private ships and 7 long-term charter ships. In particular, based on long-term contracts with blue-chip shippers, it is stably generating about 70-80% of total sales. In addition, the fact that the remaining contract period is an average of 11 years is a factor that supports business stability. Long-term transportation contracts are characterized by applying a fixed fare to the contracted volume of transportation. It is noteworthy that even fixed-fare contracts are preserved under the fuel surcharge (BAF) clause even if fuel costs, a major factor in cost fluctuations, are increased. Through this, profitability fluctuations are effectively managed.In fact, Polaris Shipping recorded consolidated sales of 1.1914 trillion won and operating profit of 165.6 billion won at the end of last year, with an operating profit ratio of 13.8%. The average operating profit ratio over the past five years (2020-2024) was 16.4%. During the same period, the average EBITDA margin rate was 28%. Regarding Polaris Shipping's performance, the Korea Credit Rating (Korea Investors Service) explained, "We are maintaining an annual operating profit ratio of around 15% and an EBITDA margin ratio of around 25% due to long-term contracts."It also raised concerns that a total of five long-term contracts will be terminated by the end of next year. As of last month, four contracts have already expired. However, Polaris Shipping proved its market competitiveness by signing a new five-year long-term transportation contract with Valle. The contract, worth 410 billion won, calls for Polaris Shipping to operate four 210,000-ton bulk carriers signed with Valais in 2019 for five years, and the contract has been renewed.The fact that there are no plans to invest in new shipbuilding for the time being is a factor that raises expectations for smoother cash flows. Polaris Shipping has seen a significant improvement in free cash flow (FCF) as the delivery of major ships has been completed as of 2022. The FCF, which fell below 50 billion won at the end of 2019, nearly quadrupled to 191.3 billion won at the end of 2022 and achieved 555 billion won at the end of last year.An official from NICE Investing said, "Polaris Shipping has solid EBITDA creation power, a marketed borrowing structure, asset value such as ships provided as collateral for loans, and additional funding capacity through the sale of its owned ships," adding, "The burden of repayment of the remaining loans is not as large as in the past, and uncertainties in the overall governance structure of the affiliate have been resolved to a large extent."

< Chairman Han (right) presents a childbirth incentive to an employee who recently gave birth to twins.>Polaris Shipping is drawing attention as it is taking the lead in spreading a culture of supporting work-family balance.   Polaris Shipping announced on the 8th that it is actively participating in the spread of a culture of work-family balance support by introducing a new childbirth incentive system to ease the burden of childbirth and childcare on executives and employees and create a stable work-life parallel environment.   Under the recently introduced childbirth incentive system, Polaris Shipping recently paid 9 million won to employees who gave birth to twins and 6 million won to executives and employees who gave birth to their second child. Polaris Shipping also provides a monthly childcare allowance of 200,000 won until the age of 6 (72 months) after childbirth.   With the implementation of Polaris Shipping's newly introduced childbirth incentive and childcare allowance system, a total of 24.4 million won will be provided, including 10 million won in childbirth incentives and 14.4 million won in childcare allowances (200,000 won per month × 72 months), for example, if you give birth to your third child.   "In addition to the childbirth incentive and childcare allowance system, we will establish a corporate culture where employees and their families can be happy together by establishing a vacation for spouse checkups and expanding the scope of flexible work for caregivers," a Polaris Shipping official said. We will continue to strengthen the maternity protection and work-family balance support system to create an environment where employees can work with confidence, he said. 

₩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.