Korean Shipping Tycoon Hits Jackpot: "One Tanker Rakes In 750 Million Won a Day"

WSJ Highlights Jang Ka-hyun,
Vice Chairman of Janggeum Maritime

Korean shipping company Sinokor (official English name: Sinokor Merchant Marine) has rapidly expanded its very large crude carrier (VLCC) fleet to become the largest in the world just before the Iran war, and is now being seen as the biggest beneficiary in the global oil tanker market as a result of the conflict, according to analysis.

An oil tanker waiting near the Strait of Hormuz on the 2nd of last month (local time). The photo is not directly related to the content of the article. Photo by AP Yonhap News Agency

On July 2, the Wall Street Journal (WSJ) reported that Jung Kahyun, Vice Chairman of Sinokor Merchant Marine and eldest son of Chairman Jung Tae-soon of Sinokor, invested about $7 billion (approximately 980 billion won) to build the world’s largest VLCC fleet.

It is currently estimated that Sinokor Merchant Marine owns about 10% of all VLCCs worldwide. The exact fleet size has not been publicly disclosed. However, Greek ship brokerage Exclusive Shipbrokers analyzed that Sinokor Merchant Marine has secured more than 160 oil tankers, with roughly half of them being VLCCs.

Initially, the industry viewed Vice Chairman Jung’s investment moves with skepticism. Many expected that the volatile oil tanker market would ultimately deliver a harsh lesson to him as a relative newcomer to the shipping industry.

However, after the outbreak of war in Iran led to the closure of the Strait of Hormuz and severe disruption in the shipping market, an unexpected opportunity arose for Vice Chairman Jung. As the supply of crude oil from the Persian Gulf was cut off, Asian countries turned to European and American crude, driving up demand for oil tankers and sending shipping rates to record highs. According to shipping research firm Clarksons, the average daily rate for a VLCC in March surpassed $385,000, the highest since such data began to be compiled in 2000.

Before the war, Vice Chairman Jung had proactively positioned VLCCs inside the Strait of Hormuz, using them as floating storage facilities during the early stages of the conflict. Later, some vessels shuttled between the Strait of Hormuz and ports outside the Persian Gulf to transport crude oil, with traders reportedly acquiring oil from these ships for transport to Asia. The WSJ described this as "one of the boldest bets in shipping history."

Ship brokerage Clarksons reported that, immediately after the U.S. and Israel launched attacks on Iran, the average daily VLCC rate soared to $385,000 (about 589 million won)—the highest since 2000. Currently, the daily charter rate is around $500,000 (about 750 million won). The WSJ noted, "Although tanker rates have calmed somewhat compared to the early days of the war, they remain high," adding, "Shipping veterans expect that complex trade patterns and expensive tanker costs will outlast the current conflict."

Vice Chairman Jung is regarded as a reclusive manager and is also known in the industry as a passionate judo enthusiast. At a recent shipping conference in Athens, he was reportedly seen smoking a cigar surrounded by bodyguards. Sinokor Merchant Marine originated from a joint venture established by Chairman Jung and Chinese partners during the thaw in Korea-China relations in 1989. The company has since ramped up its expansion into the oil tanker business after the pandemic, accelerating ship acquisitions since last year. Industry observers believe that Vice Chairman Jung is pursuing a strategy to build a massive fleet and secure market dominance by leveraging substantial capital.

This content was produced with the assistance of AI translation services.