710 Billion Won Focused Investment by 2028 in 'K-Joseon Super Gap'

15th Emergency Economic Ministers' Meeting
'K-Chosun Next-Generation Leading Strategy'

The government will invest 710 billion KRW by 2028 to create a super-gap in the shipbuilding industry, which is currently experiencing a boom. It aims to commercialize technologies related to core decarbonization fuels and smarten shipyard manufacturing systems by utilizing digital technology and robotics.

On the 15th, the Ministry of Trade, Industry and Energy announced the "K-Shipbuilding Next-Generation Leading Strategy" containing these details at the Emergency Economic Ministers' Meeting and Export Investment Measures Meeting.

HD Hyundai Heavy Industries LNG Carrier

As of October this year, domestic shipbuilders have an order backlog of 39.88 million CGT (Compensated Gross Tonnage), accounting for 30% of global orders since 2017. They lead the global shipbuilding industry by securing 60% of high value-added ships and 45.6% of eco-friendly ships. However, they face challenges from Chinese competitors, expansion of carbon reduction technologies, and labor shortages.

Accordingly, the government plans to enhance competitiveness to maintain leadership in the shipbuilding industry and secure future markets.

First, 200 billion KRW will be invested over the next five years to commercialize technologies for the three major decarbonization fuels: LNG, ammonia, and hydrogen.

For LNG ships, core technologies such as methane slip reduction devices will be advanced and track record acquisition supported. For ammonia ships, development of fuel supply system technologies and establishment of test and evaluation facilities will be undertaken. For hydrogen ships, by 2030, fundamental cargo hold technologies will be secured to commercialize the world's first medium-sized hydrogen ship.

1.6 trillion KRW will be invested by 2025 in autonomous ships. This includes support for intelligent system performance testing and development, maritime demonstration using regulatory sandboxes, and participation in technology standard discussions. Additionally, over 3,000 talents annually will be trained, including 2,000 production technology personnel and 1,000 in design.

Furthermore, 150 billion KRW will be invested by 2027 to support digital transformation (DX) and robotics deployment in shipyards. A Small and Medium-sized Shipyard Production Technology Innovation Center will be established in Geoje, Gyeongnam. By 2028, 200 billion KRW will be invested in future ship equipment technology development, including electric propulsion, carbon reduction equipment, and small modular nuclear reactors.

Ministry of Trade, Industry and Energy K-Shipbuilding Next-Generation Leading Strategy

To secure foreign labor, the expansion of a program will be considered where foreigners enter Korea as trainees under a "training visa," complete job training, and upon passing, convert to an E-7 visa.

Conditions for issuing Refund Guarantee (RG) for advance payments will also be improved for medium-sized shipbuilders. An environment will be created to facilitate smooth RG issuance by policy financial institutions or the private sector, and special guarantees by the Korea Trade Insurance Corporation will support shortages in RG limits.

Jang Young-jin, First Vice Minister of the Ministry of Trade, Industry and Energy, said, "The global shipbuilding market is showing a favorable trend, opening a great opportunity for our shipbuilding industry to rebound from past recessions. We will unite the government and private sector to concentrate all capabilities on strengthening competitiveness so that K-Shipbuilding can continue to lead the next-generation market as the world's number one industry."

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