Passenger Ship Modernization 추진…Private Financing to Raise 600 Billion Won by 2030

The government will raise up to 600 billion KRW in private financing by 2030 to promote the modernization of coastal passenger ships. It will also provide real-time passenger ship operation information through app development, and initiate policy support to reduce the additional delivery charges imposed on island regions.

On the 17th, the Ministry of Oceans and Fisheries announced that it had established and finalized the "Coastal Transportation Safety Enhancement and Industry Promotion Measures" at the 'State Affairs Ministerial Meeting' chaired by the Prime Minister. Coastal transportation refers to the operation of passenger ships and other vessels connecting land and sea boundaries. Until now, coastal transportation policies have focused on strengthening safety management and improving transportation welfare for passenger ships used by 14 million people annually, but this new measure emphasizes revitalizing the market through private investment.

Specifically, to expand the inflow of private financing into the coastal transportation market, a modernization fund of 600 billion KRW will be raised by 2030. When supporting the modernization fund, in addition to the private financing guarantee support from the Korea Ocean Business Corporation, a matching fund will be newly established to directly support shipbuilding funds. Furthermore, a national passenger ship fund will be created; whereas the government has so far fully subsidized passenger ship construction and operation, going forward, ships will be built by the private sector, and the government will enter into charter contracts to improve fiscal efficiency.

[Image source=Yonhap News]

To encourage the conversion of aging coastal passenger ships to eco-friendly vessels, plans are underway to provide acquisition tax reductions of 1 to 2 percentage points. Benefits such as green finance interest rate advantages (0.9?3.4%) and preferential secondary interest subsidies (0.5 percentage points) will also be supported.

The loan barriers that small and medium-sized shipping companies find difficult to overcome will also be lowered. Financial competitiveness will be strengthened through a consortium of small and medium-sized shipping companies and small and medium-sized shipyards, and targeted support will be provided by relaxing the RG (payment guarantee) requirements of small and medium-sized shipyards.

To alleviate public concerns about passenger ship safety, an app providing real-time passenger ship traffic information will be developed and operated. Passenger ship usage convenience will be greatly enhanced through integration with popular platforms such as Naver and reservation services. Additionally, to reduce the additional delivery costs borne by island regions compared to inland areas due to delivery via passenger ships, temporary support will be provided within the budget during holiday periods when delivery demand increases.

Minister of Oceans and Fisheries Cho Seung-hwan stated, "Since the coastal transportation industry can transition to a market-centered system and operate sustainably in the long term, we will carry out these measures without fail."

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