Leading South Korean bulk operator Korea Line Corporation is partnering Daewoo Shipbuilding and Marine Engineering to form a new tanker unit.

Daewoo, South Korea's third largest shipbuilder, announced this through a stock exchange filing on Tuesday.

A Korea Line spokesman has been quoted saying that both partners would each invest some $45 million in a 50:50 joint venture named DK Shipping.

The Panama-based single-purpose DK Shipping will begin operations around two VLCCs currently being built at Daewoo itself, said the spokesman.

Delivery is slated for 2010 and 2011 and the Korea Line spokesman highlighted that while no charter had yet been assigned to either VLCC, both are “likely to be employed by a domestic energy company”.

The JV agreement reportedly calls for Korea Line or another company approved by Daewoo to manage the two VLCCs.