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Korea faces dilemma on Arctic routes due to international sanctions on Russia
President Lee Jae Myung encourages officials in charge of preparing for the use of Arctic shipping routes at the Ministry of Oceans and Fisheries in Busan, Dec. 23, 2025. Yonhap
By Park Jae-hyuk
Challenges lie ahead for oceans ministry after relocation to Busan
BUSAN — Korea’s Ministry of Oceans and Fisheries appears at a loss over how it will help domestic shippers tap into the Arctic shipping route, which was one of the main reasons for the ministry’s relocation to Busan.
The ministry on Monday declined to elaborate on how it plans to work with Russia, which is under international sanctions, to enable Korea’s use of Arctic routes, or how it intends to persuade local firms to transport cargo via the North Pole.
Although the ministry relocated from Sejong to Busan just six months after President Lee Jae Myung floated the idea, stressing the need to prepare for the era of Arctic shipping, uncertainty still surrounds the ministry’s plan to operate a 3,000-TEU container ship from Busan to Rotterdam via the North Pole in September.
“Cooperation with Russia is absolutely crucial for using Arctic shipping routes, as I mentioned during last month’s presidential policy briefing,” acting Oceans Minister Kim Sung-bum told reporters. “However, we cannot disregard the Western bloc’s sanctions on Russia, since Korea is also part of them.”
He added that the ministry will announce specific countermeasures, after trying to arrange talks with Russia during the first half of this year.
On ways to encourage companies to use Arctic routes, Kim said the ministry will identify which incentives those firms need. Although Arctic routes shorten voyages between Asia and Europe compared with the Suez Canal, higher insurance premiums raise overall costs.
“Arctic routes may not be economically feasible until economies of scale are achieved after commercial operations begin,” he said. “It is inevitable for us to provide incentives to companies participating in the test operations scheduled for this year.”
Acting Oceans Minister Kim Sung-bum speaks during a press conference at the Ministry of Oceans and Fisheries in Busan, Monday. Courtesy of Ministry of Oceans and Fisheries
Kim also signaled that the ministry will not intervene in IMM Private Equity’s sale of Hyundai LNG Shipping to an Indonesian firm, despite strong backlash from the shipping industry. There are also growing concerns about possible foreign takeovers of SK Shipping and H-Line Shipping, both owned by another private equity firm, Hahn & Company, and relocated to Busan this month.
“Although we believe that shipping firms transporting strategic items should remain under Korean ownership, it is difficult for us to intervene in private-sector decisions without holding shares,” Kim said. “Even though Hyundai LNG Shipping also serves Korea, most of its operations are international, so we expect minimal disruption to the transport of strategic goods.”
During the ministry’s first press conference since its relocation last month, Kim acknowledged ongoing challenges.
The ministry continues to operate a satellite office in Sejong for staff attending inter-ministerial meetings. Addressing concerns about administrative inefficiency, Kim said the ministry has already drawn up plans to maintain productivity.
“It takes me longer now to travel to Seoul for meetings and events,” he said. “We have encouraged working-level staff to hold meetings and give briefings remotely.”
Following the resignation of former Oceans Minister Chun Jae-soo last month amid a bribery scandal involving the Unification Church, the ministry has also delayed this month's announcement of plans to relocate its affiliated organizations to Busan.
“We cannot discuss specific plans until talks with relevant ministries and the Busan Metropolitan Government are completed,” he said.
The site for the ministry’s new headquarters in the southeastern port city also remains undecided. The ministry is currently leasing two old buildings to house its offices.
“We will finish administrative procedures by the end of this year and begin designing the new building next year,” Kim said.