"Ulsan Selected as Final Hub for Global Ship MRO... Defense Innovation Cluster Launched"

Final Selection for Defense Innovation Cluster: 49 Billion Won to Be Invested by 2030


Building a Smart Naval Maintenance Ecosystem Centered on HD Hyundai Heavy Industries and UNIST

Ulsan City is taking significant steps to foster the ship maintenance, repair, and overhaul (MRO) industry, which is regarded as a core sector for the future of the defense industry.

Ulsan City announced that, together with Busan, Gyeongnam, and Jeonnam, it has been selected in the ship MRO sector as the final recipient in the Defense Acquisition Program Administration's "2026 Defense Innovation Cluster New Region Selection Contest."

The Defense Innovation Cluster project has been launched to respond to intensifying competition in the global ship MRO market and secure future growth engines for the domestic shipbuilding and defense industries. The main goal is to build an ultra-regional cooperation system among Busan, Ulsan, Gyeongnam, and Jeonnam—regions with a concentrated shipbuilding industry base—to enhance competitiveness in the ship maintenance and repair sector.

Ulsan City has proactively responded to the contest by building a cooperative framework among government ministries, related agencies, and local businesses in order to cultivate the ship MRO industry as a strategic future industry for the region. Previously, Ulsan was also selected for the Ministry of Trade, Industry and Energy's "Support Project for Enhancing Global Competitiveness of Small and Medium Shipyard Ship MRO," and now, with this Defense Innovation Cluster project, the city will accelerate industry development.

Ship MRO is a high value-added industry responsible for the maintenance, repair, and overhaul of naval vessels, combining advanced defense technologies with high-level maintenance capabilities. Due to changes in the global security environment and increasing demand for ship modernization, it is drawing attention as a future strategic industry.

This project will see a total investment of 4.9 billion won, including 2.45 billion won in national funding and 2.45 billion won from participating local governments, from this year through 2030. The funds will support the establishment of ship MRO infrastructure and technology development, defense export support, and business support programs.

Major initiatives include the establishment of a comprehensive support center, a quality certification center, and a workforce training center, as well as the development of smart MRO and international joint technology, defense security, and export support projects.

Ulsan City will participate in the project with a total investment of 1.5 billion won, focusing on building a ship MRO workforce training center, smart MRO, and international joint technology development projects with Ulsan Technopark at the center.

In particular, Ulsan is expected to play a key role in the areas of smart maintenance technology based on AI and ICT and specialized workforce training. The city’s global competitiveness is further highlighted by the presence of HD Hyundai Heavy Industries, which has obtained Maintenance, Repair, and Overhaul (MSRA) certification from the U.S. Navy and has a proven record in winning U.S. naval maintenance contracts.

The Ship MRO Workforce Training Center will be equipped with advanced education infrastructure, including XR-based simulators, 3D scanners for reverse engineering, and engineering software. In addition, Ulsan National Institute of Science and Technology will lead next-generation ship MRO technology development and international joint R&D by integrating advanced materials with AI and digital technologies.

Alongside this, Ulsan plans to support local small and medium-sized enterprises in entering overseas markets through the development of AI-based maintenance support robots, remote maintenance collaboration systems, predictive maintenance technology, as well as defense quality certification, cybersecurity (CMMC) consulting, and export consulting meetings.

With this project, Ulsan City aims to expand its industry structure, which has traditionally focused on commercial ships, to include ship maintenance and defense-related industries, and to build a full-cycle industrial ecosystem encompassing technology development, business support, workforce training, and exports.

An Ulsan City official stated, "The selection for the Defense Innovation Cluster recognizes Ulsan’s global competitiveness in the shipbuilding industry and its capabilities in nurturing the ship MRO sector," adding, "We will do our utmost to establish an AI-based smart ship MRO industry ecosystem and become a leading hub for the global defense industry."

Ulsan City Hall.

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