Hyundai Merchant Marine has inked a memorandum of understanding with state-backed Korea Shipping Company for vessel sales worth up to Won850bn ($739.4m) book value, which will strengthen HMM's financial position.

Under the deal, HMM will sell 10 of its container ships to KSC for around Won150bn market value of the vessels, and KSC will finance the outstanding amount by purchasing shares and bonds from HMM.

The ship financing company will buy around Won100bn worth of shares and Won600bn in convertible bonds from HMM.

HMM will consider leasing back the 10 vessels in the days ahead. (Sales and Lease Back)

HMM official said "The contract will improve the financial structure and liquidity by reducing the debt ratio as well as streamlining the container ship cost structure" and "we also expect to boost competitiveness through Global Shipping Fund and New shipbuiding financing program."