The percentage of “foreign” sailors who must be on board ships is set by the Ministry of Oceans and Fisheries or by collective agreements between work and management, subject to the nature of the vessel (Article 3 of the Korean Administrative Guideline for the Management of Foreign Sailors). Compared to England, Hong Kong or Singapore, Korea has not yet been able to qualify as a ship finance centre. Yet in many ways, Korea has the potential to become a ship finance centre in the near future. For example, in 2003, the Korea Marine Finance Corporation (KOMARF) was established to support the financing of vessels to related companies. KOMARF carries out all the necessary work to conclude agreements between Ship Investment Company (SIC) and related persons (ship operating company, shipyard, financial institution, deposit company, etc.). The volume of their activities includes the purchase of a vessel, the chartering of a vessel, the issuance of bonds or bonds for the purchase of a vessel, the issuance and sale of inventory, the management and sale of vessels acquired by the company, and other relevant matters. For example, the rights to unpaid wages, breach of employment contract, accident pay and nullity of dismissal by civil proceedings and prosecution for violations of the Korean Seafarers Act will be settled by criminal proceedings. ITF agreements, such as the standard ITF collective agreement and the ITF-FKSU Total Crew Cost, are used in the Republic of Korea, as are local collective agreements between work and management, which are subject to the type of vessel and are generally reviewed every three or four years. The financing of ships or shipping is closely linked to the maritime industry, shipbuilding and banking. A ship is the most important property of a shipping company. Therefore, the management of the shipping company should make a prudent decision with respect to shipbuilding, because shipbuilding is long-term and the price of the ship is very expensive. Ship financing is international in nature and is closely linked to diverse and complex contracts.
Die rechtliche Struktur der Schiffsfinanzierung umfasst daher einen Schiffbauvertrag, einen Seebef-rderungsvertrag, einen Schiffsversicherungsvertrag und einen Darlehensvertrag. As a kind of contract for shipping, a CharterHire Purchase (BBCHP) has an important role to play in financing ships. The BBCHP is produced under BIMCO BARECON 2001 on the principle of contractual freedom. As far as the BBCHP is concerned, there are two main issues. First, the legal nature of BBCHP is the subject of many legal controversies. Although BBCHP can be considered a leasing, the nature of BBCHP is the long-term sales contract. In addition, the Korean Supreme Court has always held that BBCHP is a long-term contract. Second, there are many legal theories about the BBCHP under the debtor rehabilitation and bankruptcy act in Korea. As part of the redress procedure, BBCHP should be considered a bilateral contract that is not respected by both parties, even though the legal status of the shipowner may be considered to have a right of guarantee. With respect to the coasting trade (coastal merchant ship), the number of foreign sailors on board is limited to eight, in accordance with the 2015 collective agreement between the Korea Shipping Association and the Association of Korean Sailors` Associations, where the total number of sailors on board is more than 21 per vessel, and is graduated according to the total number of sailors on board.