Amid Middle East War Crisis, Oceans Ministry Swiftly Executes 22.6 Billion Won Supplementary Budget for Coastal Shipping Companies

Resolving Liquidity Shortages for Shipping Companies
and Supporting Normal Operations

The government has decided to swiftly execute a supplementary budget to ease the burden on coastal shipping companies struggling due to the recent surge in oil prices triggered by the Middle East war.

On May 7, the Ministry of Oceans and Fisheries announced that it will promptly execute 2.26 billion won secured through the supplementary budget, which includes oil price-linked subsidies and compensation for operating deficits.

A total of 2,057 passenger and cargo vessels operating along the coast serve as the only means of transportation for island residents and play a crucial role in logistics transport to and from island regions. However, these vessels are currently facing significant operational difficulties due to the sharp rise in oil prices caused by the Middle East conflict. In response, the Ministry will swiftly distribute the total 2.26 billion won to resolve liquidity shortages for shipping companies and support normal operations.

First, the government plans to allocate an additional 2.9 billion won in operational deficit support within the first half of the year to 42 routes, including 29 state-subsidized routes and 13 deficit routes supporting daily life among a total of 99 coastal passenger shipping routes. For the remaining 57 routes not covered by this project, the newly secured “2026 Temporary Operational Deficit Support Fund for Short-term Deficit Routes” totaling 6.8 billion won will be disbursed in three installments, every two months starting in June. To expedite support for shipping companies, instead of calculating deficit payments at year-end, a portion of the deficit incurred up to June and August will be paid based on actual losses during those periods. Subsequently, final payments will be made at the end of October, following an accounting audit based on business performance from January to September 2026, within a limit of 30% of the confirmed deficit amount.

To support cargo shipping companies, the government will also expedite the payment cycle by switching the payment of 6.7 billion won in fuel tax subsidies and 6.2 billion won in diesel-linked subsidies, secured through the supplementary budget, from a quarterly to a monthly basis.

Minister of Oceans and Fisheries Hwang Jongwoo stated, “Coastal shipping vessels are the lifelines of our coastal regions, performing roles similar to buses, subways, and delivery trucks. If operations are disrupted, island residents could face serious inconveniences. We will provide proactive support for the normal operation of shipping companies through the swift execution of financial resources.”

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