Ministry of Industry Develops 700 Billion KRW Eco-Friendly Ship Technology... "Strengthening Competitiveness of Shipbuilding Equipment Industry"

[Asia Economy Reporter Kim Bo-kyung] The Ministry of Trade, Industry and Energy has decided to develop core technologies for future eco-friendly ships worth 700 billion won to strengthen the competitiveness of the shipbuilding equipment industry.

On the 24th, Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy announced this plan during a visit to the second production plant of Korea Carbon, a shipbuilding equipment company located in Miryang, Gyeongnam.

This visit was made to share the current situation between the shipbuilding equipment industry and the government and to seek countermeasures amid a sharp decline in shipbuilding orders due to the impact of the novel coronavirus disease (COVID-19).

Minister Sung stated, "We are aware that the business conditions of medium-sized shipbuilders and equipment companies may deteriorate due to difficulties in meetings caused by COVID-19, continued decline in orders, delays in ship deliveries, and the spread of cancellations of already ordered volumes."

He emphasized, "We are actively supporting in cooperation with related ministries to ensure that normal companies do not collapse due to temporary liquidity crises."

The government decided on the 22nd to establish a 40 trillion won fund to stabilize key industries at an emergency economic meeting.

At the crisis management meeting on the 23rd, measures were finalized to continue supporting production financing for the shipbuilding industry worth 8 trillion won and to ensure that advance payment refund guarantees are issued on time. In particular, support will be expanded for parts and equipment companies based on delivery contracts to assist with production costs.

Minister Sung said, "We will actively support future technology development to strengthen the competitiveness of the shipbuilding equipment industry not only to secure short-term liquidity but also to prepare for demand expansion after COVID-19."

Accordingly, the Ministry of Trade, Industry and Energy plans to systematically develop future eco-friendly ship technologies by establishing a 'Basic Plan for the Development of Eco-friendly Ships (every 5 years)' and annual implementation plans.

To support financial backing, a preliminary feasibility study for the development of core technologies for future eco-friendly ships worth 700 billion won has also been underway since the second quarter.

Korea Carbon is a company that supplies carbon fiber composite materials to countries worldwide, spanning shipbuilding, automotive, aviation, and defense industries. It is also a model company that has been hardly affected by COVID-19 through business diversification based on research and development investment for the future and the establishment of a global supply chain.

However, some concerning situations have arisen, such as the postponement of JEC WORLD 2020, the largest composite materials exhibition held in Paris, France, to May, and the cancellation of schedules with Israel's largest state-owned defense company IAI.

Minister Sung emphasized, "Companies investing in technology development to prepare for the future, like Korea Carbon, will play a major role in turning the economic crisis into an opportunity," adding, "We will actively assist the industry's short-term financial difficulties and liquidity support as well as mid- to long-term core technology development."

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