Gov't proposes strategy to boost competitiveness of shipbuilding industry
Industry Minister Kim Jung-kwan, center, visits Hanwha Ocean Co.'s shipyard in Geoje, South Gyeongsang Province, Aug. 14, 2025. Courtesy of Ministry of Trade, Industry and Resources
The government on Wednesday proposed an initiative aimed at boosting the competitiveness of Korea's shipbuilding industry as the importance of the sector has grown amid global uncertainties.
The initiative was unveiled at a meeting of related government authorities, including the industry, oceans and finance ministries, and executives from large to small and midsized shipbuilding companies in the southeastern city of Ulsan, which is home to many of the country's largest shipyards, according to the Ministry of Trade, Industry and Resources.
In the meeting, the industry ministry proposed three strategies aimed at making Korea the global leader in the shipbuilding sector, which are strengthening the fundamental manufacturing capabilities, expanding foothold in global markets, and creating a sustainable industrial ecosystem to promote balanced growth of both small and large companies.
The initiative is needed to help the Korean shipbuilding industry maintain its power amid major economies' push to rebuild their maritime capacity in the face of heightened uncertainties in global trade and a volatile geopolitical environment, the ministry explained, pointing to the United States' maritime action plan and Japan's plan to double its annual ship production capacity by 2035.
Going into detail, the ministry said it will invest up to 525 billion won ($352 million) over the next five years to help local companies secure seven key technologies that will become future growth engines for the shipbuilding industry, including those related to liquefied natural gas (LNG) carriers, ammonia carriers, hydrogen transport vessels and polar icebreakers.
The ministry added it will invest 1 trillion won by 2030 in cooperation with the private sector to build the world's first 24-hour operated shipyard powered by artificial intelligence (AI) and inject 630 billion won over the next seven years to develop Level 4 fully autonomous vessels.
In a bid to bolster the stability of national security-related resources, it will also push for the public sector's prioritization of domestic orders for ships related to resources and energy supplies.
To help expand Korean companies' global presence, the government will work to establish a shipbuilding alliance with countries interested in cooperation with Seoul, such as the United States, India, Vietnam, the Philippines and Saudi Arabia.
Additionally, the government will help shipbuilders foster more talent for the industry while devising measures to provide necessary financial support for small and medium-sized firms and subsidiaries, the ministry said.