…As Korea Okays USD 1.2 Bn Boost for Shipping Support Entity***
COSCO Shipping Lines confirmed that it has been hit by a cyber attack impacting its internet connection within its offices in America.
As such, local email and network telephone were not working properly and the company decided to shut down the connections with other regions for further investigation.
Based on the information released so far, the incident that took place on Tuesday, July 24, was described as a ransomware attack.
The Chinese shipping and logistics company said that its vessels were not impacted and that its main business operation systems were performing stably. However, COSCO’s terminal at the Port of Long Beach was affected.
“We are glad to inform you that we have taken effective measures. Except for above regions affected by the network problem, the business operation within all other regions will be recovered very soon. The business operations in the affected regions are still being carried out, and we are trying best to make a full and quick recovery. We will keep you updated of the latest progress through various channels,” the company said.
The latest attack is a stark reminder of the ever growing threat from cyber attacks in the maritime world which ic becoming increasingly dependent on digital technology.
Even though the impact was not as severe as the one experienced by Maersk Group in June 2017, companies are encouraged to boost their cyber security if they want to avoid the scenario that cost Maersk around USD 300 million.
In the meantime, the government of South Korea has approved a major investment in the recently launched state entity, Korean Ocean Business Corporation.
Namely, the country’s finance ministry on July 24 said that KRW 1.35 trillion (USD 1.2 billion) in-kind investment would be made into the new company through stock contribution.
According to the ministry’s statement, 12.7 percent stakes in South Korea’s four port authorities would be contributed to the Korea Ocean Business Corporation.
Korean Ocean Business Corporation was established earlier in July, nearly one year after the government proposed to set up the agency, in an effort to support the local shipping industry.
The entity would focus on supporting the country’s five-year plan for the reconstruction of its ailing shipping industry with the construction of about 200 ships in the next three years.
The corporation was officially launched in Busan with an initial capital base of KRW 3.1 trillion. Additionally, the country’s government plans to invest KRW 200 billion into the agency.
World Maritime News
