Pan Ocean has earmarked KRW 483.1 billion (USD 444 million) to finance the order.
The new ships are intended to be employed on long-term cargo contracts.
In a separate announcement, the company disclosed that it had entered into a Contract Of Affreigtment (COA) with Brazilian mining company Vale International SA on November 29, 2017, for the transportation of Brazilian iron ore at estimated total sales of approximately USD 1.8 billion.
The duration of the COA is 27 years starting from the first quarter of 2020.
As explained by Pan Ocean, the COA will secure a stabilized source of revenue and profit for the shipping company.
The first ship from the batch is scheduled for delivery in December 2019, while the final one from the series is set for completion and delivery in September, 2021.
Details on the potential yards to be entrusted with the construction work were not disclosed.
Pan Ocean reported a 55.4 percent rise in profit for the third quarter of 2017 when compared to the third quarter of 2016.
The Q3 profit for this year stood at USD 36.9 million against USD 23.7 million reported in Q3, 2016.
The increase was attributed to demand growth related to iron ore and coal in China driven by the steady development of the country’s economy.
Source: World Maritime News