Shipbuilding Meets Defense... Busan Targets the Global Naval Vessel MRO Market
by Kim Yongu
Published 01 Apr.2026 09:45(KST)
Selected for “Global Competitiveness Enhancement Project for Naval Vessel MRO”
Mayor Park Hyung-joon: “Vitalizing Small and Medium Shipbuilders and Equipment Suppliers”
The city of Busan is expanding its shipbuilding industry into the defense sector to target the global market.
On April 1, the Busan Metropolitan Government announced that it had been selected for the Ministry of Trade, Industry and Energy’s “Global Competitiveness Enhancement Project for Maintenance, Repair, and Overhaul (MRO) of Naval Vessels by Small and Medium Shipbuilders.”
This large-scale project will invest a total of 49.5 billion won from 2026 to 2030. The initiative will be jointly promoted by Busan, Gyeongnam, Ulsan, and Jeonnam, with 25 billion won coming from the central government budget.
The project aims to enhance the competitiveness of local small and medium-sized shipbuilders and equipment suppliers by entering the global naval vessel MRO market. The Small & Medium Shipbuilding Research Institute will take the lead, with participation from related organizations such as Busan Technopark.
The city plans to restructure the shipbuilding industry into a high value-added defense sector in response to the U.S. “MASGA” project and the reorganization of the Northeast Asian MRO supply chain. To this end, the project will focus on two main pillars: corporate support and workforce development.
Corporate support will cover a total of 200 cases and will be implemented as a package, including: ▲ leasing dedicated MRO yard facilities, ▲ supporting certification for U.S. naval vessel maintenance qualifications, and ▲ providing technical support for Korea-U.S. supply chain cooperation.
The initiative focuses on lowering initial market entry barriers, such as meeting U.S. military specifications and classification standards and obtaining certifications. In the workforce area, the project will train 2,000 on-site specialists, providing training allowances and employment incentives to establish a seamless pathway to employment.
Busan is a hub of the shipbuilding industry, with major shipyards such as HJ Shipbuilding & Construction and Daesun Shipbuilding, as well as repair shipyards and parts suppliers concentrated in the area. The city intends to leverage this foundation to expand the industrial ecosystem by linking with the defense supply chain.
Economic benefits are also anticipated, including an estimated 10.99 billion won in production inducement, 3.27 billion won in value-added, and the creation of 321 jobs.
Going forward, the city plans to create synergy by linking this initiative with future projects such as the Defense Acquisition Program Administration’s MRO cluster project, fostering the defense industry as a key future sector for Busan.
Busan Mayor Park Hyung-joon emphasized, “This will be an opportunity to reinvigorate small and medium-sized shipbuilders and parts suppliers,” adding, “We will provide support so that new growth engines can be secured by connecting with the global defense supply chain.”
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