South Korea is one of the most important nations in the world in both shipbuilding and shipping. However, coordination between the two industries has been considered to be in need of improvement – a new plan is now set to change this.
South Korea is planning to strengthen cooperation in its domestic maritime industry. The country is a global leader in both shipbuilding and shipping. South Korea holds the second largest share of shipbuilding orders (after China) and ranks fourth in the world in terms of ship capacity. However, critics in the country have repeatedly voiced concerns in the past that the two sectors are not sufficiently coordinated.
The current situation in the Middle East in particular has now prompted the creation of an alliance of private and public representatives. The “Council for the Strategy of Mutual Growth of Shipbuilding and Shipping” was founded this week in the capital Seoul. Around 100 participants were present, including the Ministers of Economy and Energy and of Oceans and Fisheries, the chairmen of the Korea Gas Corporation, the Korean Shipbuilding and Offshore Equipment Association and the Korean Shipowners’ Association, as well as executives from leading shipbuilders and shipping companies.
The newly formed council has unveiled a strategy called “WAVE” (World-Class Alliance for Vessels Production & Ecosystem), which aims to strengthen cooperation between shipbuilding and shipping in the country. The plan aims to close technology gaps and form industry-wide alliances. South Korea wants to further expand its national fleet, support shipyards in the country and create an economically oriented ecosystem for mutual growth.
As reported by the Korea Times, a detailed implementation plan is to follow at the end of the year. However, the basic aim is for Korean shipping companies to also order their newbuildings in South Korea. Representatives of the Shipbuilding and Offshore Equipment Association and the Shipowners’ Association jointly signed a declaration in which they call for greater coordination of ship orders. They referred to current examples: Koryo Shipping has ordered six container ships of 1,900 each, while the liner shipping company HMM has ordered ten ships of 2,800 TEU each. They are each being built by HD Hyundai Heavy Industries.
In view of the situation in Iran and the resulting uncertainty in the energy supply, the resilience of the energy supply also played a role in the new “WAVE” plan. Supplies should also be guaranteed in the future. To this end, the country’s three largest shipbuilding companies, the Korea Gas Corporation and the Korea Shipowners’ Association signed a memorandum of understanding to work together on the transportation of LNG.
The Ministry of Trade, Industry and Energy and Ministry of Oceans and Fisheries also announced plans to jointly invest 600 billion won (approximately $407 million) in a program to develop AI-powered autonomous ship technology this year. In addition, Korean-American cooperation in shipbuilding is to be expanded. South Korea is one of US President Donald Trump’s most important pillars for revitalizing American shipbuilding, which is almost irrelevant in global competition.
