South Korea Proposes Plan to Strengthen Shipbuilding Industry

The government on Wednesday proposed an initiative aimed at boosting the competitiveness of South Korea's shipbuilding industry. The initiative was unveiled at a meeting of related government authorities, including the industry, oceans and finance ministries, and executives from large to small and midsized shipbuilding companies in the southeastern city of Ulsan.

Ulsan is home to many of the country's largest shipyards, according to the Ministry of Trade, Industry and Resources. In the meeting, the industry ministry proposed three strategies to make South Korea the global leader in the shipbuilding sector. Those strategies are strengthening fundamental manufacturing capabilities, expanding foothold in global markets, and creating a sustainable industrial ecosystem to promote balanced growth of both small and large companies.

Officials pointed to the United States' maritime action plan and Japan's plan to double its annual ship production capacity by 2035.

The ministry said it will invest up to 525 billion won (US$352 million) over the next five years to help local companies secure seven key technologies. Those technologies include those related to liquefied natural gas carriers, ammonia carriers, hydrogen transport vessels and polar icebreakers.

The ministry added it will invest 1 trillion won by 2030 in cooperation with the private sector to build the world's first 24-hour operated shipyard powered by artificial intelligence. It will also inject 630 billion won over the next seven years to develop Level 4 fully autonomous vessels.

In a bid to bolster the stability of national security-related resources, officials will push for the public sector's prioritization of domestic orders for ships related to resources and energy supplies. The government will also help shipbuilders foster more talent for the industry while devising measures to provide necessary financial support for small and medium-sized firms and subsidiaries.