South Korea boosts marine capital with shipbuilding aid, fleet cuts, Arctic push

The South Korean government has increased marine capital funding significantly in its 2027 budget proposal, with a 10.8% increase to 8.2636 trillion won from this year's 7.4583 trillion won. The budget allocation is aimed at developing the Busan-Ulsan-South Gyeongsang marine capital area, transitioning the fisheries management system, and accelerating the artificial intelligence grand transition (AX) in the marine and fisheries sector.

The government plans to support eco-friendly ship construction, icebreaker development for Arctic routes, and modernize coastal fishing vessels. A coastal fishing vessel modernization fund of 394 billion won will focus on reducing aging vessels and supporting newbuilds. This will include a new 15.7 billion won investment in autonomous navigation technology to expand the competitive edge of the shipping and port industry.

Additionally, the government will allocate 2 trillion won to shipping and ports, 500 billion won to marine environment protection, and 900 billion won for research and development. A new budget of 18.4 billion won will support preparations for Arctic route pilot operations, while 15.8 billion won will be invested to tackle illegal fishing by Chinese vessels.

The Ministry of Oceans and Fisheries aims to create a 4 billion won seafood export target for 2028, with a focus on expanding exports of high-value gim. K-GIM leading zones will be designated to build offshore smart farms and onshore leased farms to support this goal.