HJ Shipbuilding & Construction (HJSC) has signed a memorandum of understanding (MOU) with Korea Real Estate Investment and Trust and Mirae Asset Securities for mutual cooperation in active Security Token Offering (STO) related to ship financing.
As a prominent player in the shipbuilding industry in Korea, HJSC plans to collaborate with Korea Real Estate Investment and Trust, which has extensive knowledge of investment and finance in Korea, and Mirae Asset Securities, which has been recognized for its innovative finance in the STO sector.
The signing ceremony was held on February 16 at the head office of Korea Real Estate Investment and Trust in Seoul, attended by CEO Yoo Sang-cheol of HJSC's shipbuilding business, President Kim Jeong-seon of Korea Real Estate Investment, and CEO Ahn In-seong of Mirae Asset Securities' digital business.
The parties involved in the MOU agreed to discuss the implementation method in detail after agreeing on mutual cooperation to identify projects, including the issuance of security tokens related to ship financing using blockchain technology, and exploring new business models, including the application of financial regulatory sandbox.
STO is a digital asset, a security token issued based on conventional assets such as real estate, artworks, and shares. STO applied to ship financing, which has difficulty in attracting small-scale investment, is the representative case of raising public offering funds through diversified investment using blockchain technology.
HJSC gained considerable attention by proposing the use of Security Token Offering (STO), the blockchain-based security token, to activate the shipbuilding industry and ship financing at the "BWB(Blockchain Week in Busan) 2022" conference held by Busan Metropolitan Government last year.
HJSC believes that by tokenizing the right on a ship, investors can share the ownership of a ship, leading to new innovation in shipping and the shipbuilding industry. HJSC expects to issue STO based on blockchain technology, activating fractional investment in the existing ship ordering method, building a ship with the capital of an owner, and borrowing from financial institutions.
By securing shipbuilding costs in advance, a shipbuilder can stabilize the supply of ships and strengthen its competitiveness for winning a contract. Furthermore, blockchain-based STO will induce a virtuous cycle by enabling ship owners to expand their capacities, increasing jobs in shipbuilding yards and relevant industries in Korea, promoting the development of relevant industries, and creating more jobs.
With the MOU as another opportunity, HJSC plans to expand the scope of cooperation with Busan Metropolitan City, preparing for the establishment of Busan Digital Asset Exchange. HJSC aims to find new business models for all parties involved in the shipbuilding industry, including ship owners, shipbuilders, investors, and equipment suppliers, to achieve success.
