Advancing as a Digital Maritime Power... 230 Billion KRW R&D Investment by 2027

"Digital Maritime Traffic Information Industry Development Strategy"
Fostering 21 Export Small Giants... Increased Tax Credits

The government will promote a research and development (R&D) project worth 230 billion KRW by 2027 to advance the digital transformation of ships and reduce carbon emissions. The goal is to more than triple the number of export companies related to digital maritime traffic information and increase the global market share in this field from the 1% range to the 4% range, thereby establishing itself as a digital maritime powerhouse.

On the 5th, the Ministry of Oceans and Fisheries announced the "Digital Maritime Traffic Information Industry Promotion Strategy" at the Emergency Economic Ministers' Meeting held at the Government Seoul Office, aiming to leap forward as a global digital maritime power.

The Ministry of Oceans and Fisheries stated, "Digital technology is recognized as a key factor that will make ships safer and more efficient," and added, "The global digital maritime traffic information market is expected to grow at an average annual rate of 8%, reaching a scale of 145 trillion KRW by 2027."

The government plans to expand and nurture competitive small and medium export companies from 7 this year to 21 by 2027. To this end, it will invest 20 billion KRW in a marine new industry fund and promote an R&D project worth 230 billion KRW to develop 42 digital core technologies such as intelligent navigation equipment and 39 commercialization services including ship carbon emission reduction. Up to 40% tax credit benefits will also be provided for research and human resource development. Through this, the government envisions expanding the global market share related to digital maritime traffic information from 1.1% (12 trillion KRW) this year to 4.5% (65 trillion KRW) by 2027.

Night operations are underway at Busan Port's Sinsundae Pier, where export and import cargo is piled high. South Korea surpassed $640 billion in annual export value in 2021, setting a new record. Since recording its first $100 million in 1964, the country exceeded $10 billion in 1977, $100 billion in 1995, and $600 billion in 2018. This year, surpassing $640 billion marks a new milestone in 66 years of trade history.
Busan ? Photo by Kang Jin-hyung aymsdream@

Support will also be provided for companies' overseas expansion. To secure international competitiveness for domestic companies, 50-70% of the costs for multinational demonstrations on international routes and overseas certification acquisition will be supported. Additionally, opportunities to enter potential markets in developing countries will be provided by utilizing Official Development Assistance (ODA) projects.

An industrial ecosystem will be created and a growth foundation will be strengthened. The 'BadaNavi' service, which has been operated mainly by the government, will be provided as an open spatial information system (open platform) to allow active utilization by private companies. The Bada Navigation service is a platform that recommends the safest and fastest optimal route by using electronic nautical charts that are automatically updated in real-time at sea when a destination is selected.

To create demand for digital shipbuilding, policy financing for new digital ships will offer interest rate benefits of up to 1.0 percentage point, and private financing will offer up to 2.4 percentage points. Loan interest rate benefits will also be pursued when existing ships are converted to digital ships.

Cho Seung-hwan, Minister of Oceans and Fisheries, said, "Based on the competitiveness of Korea's shipping and shipbuilding industries, we will firmly support Korea's exports and economic growth through fostering global companies in the digital maritime traffic information field."

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