S. Korea to inject over US$ 540 mil. until 2028 to ramp up shipbuilding industry

글로벌 1위 ’K-조선’ 위상 공고히 정부, 5년간 7천억원 지원 South Korea’s shipbuilding industry has been thriving despite the global economic slowdown. The government is seeking to give it a further boost by injecting over 5-hundred million dollars that will be used to support its green transition among others. Our Moon Hye-ryeon has the details. South Korea is ramping up efforts to boost its shipbuilding sector as it seeks to dominate the global market. During an emergency economic meeting on Wednesday, the Ministry of Trade, Industry and Energy announced that the government will invest around 710 billion Korean won — roughly 544 million U.S. dollars — in the industry over the next five years. The sector makes up around three percent of total manufacturing and exports. Since 2017 South Korea has had a global market share of around 30 percent and in October reached its highest order backlog since 2011. While the government says the industry is expected to keep growing, it faces many threats, including a workforce deficit, China’s growing shipbuilding industry, and the International Maritime Organization’s goal of reducing greenhouse gases and carbon footprint. These problems are set to be tackled in three different ways – developing future technology, systemizing the manufacturing process, and modifying regulations. The government will inject 200 billion won into the commercialization of non-carbon-based fuels such as liquefied natural gas, ammonia, and hydrogen for use in ships. The south-eastern port city of Ulsan – will have an area dedicated to supplying eco-friendly fuel and will supply more than a quarter of the fuel demand of domestic ships. The Minister of Oceans and Fisheries stressed the importance of the plan. “Global shipping companies are undergoing large-scale conversions to eco-friendly ships and the availability of eco-friendly fuel at ports will be necessary for port competitiveness in the future.” A further 150 billion won will be spent on digitalizing and automating the manufacturing process, as well as the employment of three thousand more workers every year to tackle labor shortages. Revamping the visa policy and increasing quotas for foreign workers as well as establishing programs to help them adjust to life in South Korea are also among the solutions proposed. The country’s Finance Minister, Choo Kyung-ho, added that the government will be providing small to medium-sized companies with additional support such as incentives for going green and incorporating digital technology. Moon Hye-ryeon, Arirang News. #shipbuilding_industry #SouthKorea #Economy #emergency_economic_meeting #shipping #조선업 #비상경제회의 #K조선 #Arirang_News #아리랑뉴스 📣 Facebook : 📣 Twitter : 📣 Homepage : 2023-11-15, 12:00 (KST)