Busan Port Authority Issues Bonds

Busan Port Authority (BPA) decided to minimize financial borrowing and to issue bonds to fund its New Port construction. Along with this, BPA decided to make a building stone yard on Ung-dong of New Port to reduce construction costs and to join forces with other agencies to reduce costs when it launches overseas IR.

First of all, BPA plans to reduce borrowing from 140 billion won (US$152 million) to 100 billion won (US$109 million) and to raise the funds by issuing bonds rather than by borrowing the money from financial institutions after this year. The efforts are expected to save 4.2 billion won (US$4.6 million) financial costs for the next 5 years. And the construction of building stone yard on Ung-dong of New Port, which is used to supply stones from nearby Yorkmang Mountain to the construction of New Port's Distry-park, is expected to save 6.8 billion won (US$7.41 million) from the Distry-park construction costs of 21 billion won (US$22.9 million). The joint IR with KITA, KOTRA and BJFEZ and installation of electricity saving devices will help to reduce costs.

To stop implementing unnecessary budgets, BPA is going to establish a Budgets Deliberation Commission and Budgets Mismanagement Prevention Center. Mr. Lee of BPA said that BPA, as one of government-run agencies, prepared theses measures to prevent possible budget mismanagement in advance and to save budgets and is going to put forward a detailed roadmap for implementation.


SOurce:Korea IT Times