South Korea forms shipbuilding-shipping council to boost domestic equipment use

The South Korean government has established a shipbuilding-shipping council aimed at promoting the use of domestically produced shipbuilding equipment. This move is part of a broader strategy to boost the competitiveness of the K-shipbuilding industry. At a ceremony marking the 23rd Shipbuilding and Offshore Day, the Ministry of Trade, Industry and Resources announced the new co-prosperity policy direction.

Notable attendees included Vice Minister Moon Sinhak and President Lee Sang-gyun of the Korea Offshore & Shipbuilding Association.

Vice Minister Moon emphasized that shipbuilding cannot be accomplished by a single shipyard; rather, it requires collaboration among steel manufacturers, equipment providers, shipping companies, and financial institutions. The government will actively participate in the formulation of policies to ensure the success of this collaborative approach, particularly by prioritizing the loading of domestically produced equipment on newly built ships.

This initiative is intended to secure the "installed-on-actual-ship record," which is crucial for exporting such equipment.

In addition to the shipbuilding-shipping council, the government plans to launch several job-creation measures. These include joint orders by national-flag carriers and priority orders for public vessels, which will be discussed during meetings of the co-leadership council comprising the MOTI Minister and the Minister of Oceans and Fisheries.

The government also aims to strengthen co-prosperity among major firms, small and midsize shipyards, and their associated companies. To this end, the M.AX alliance, initially focused on autonomous navigation, will be expanded to cover shipyard manufacturing sites and restructured as the "AI shipbuilding alliance." This expansion will facilitate the dissemination of proven technologies from major firms to smaller partners and shipyards.

The government's support extends to the activation of refund guarantee (RG) issuance for advance payments made by small and midsize shipbuilders. This measure, along with relevant ministries and financial institutions, will be promoted to encourage investment and growth in the industry. Overseas co-prosperity efforts will continue, with the government focusing on identifying projects where equipment makers and small shipbuilders can participate under the Korea-U.S.

Shipbuilding Cooperation (MASGA) program. The government will also work to enhance the maintenance and repair capabilities of small shipbuilders and support equipment makers in entering the U.S. market. Through the Korea-U.S. Shipbuilding Cooperation Center, established in July, the government plans to foster sales channels in the U.S. market, with the first "Korea-U.S. Shipbuilding Cooperation Partnership Event" scheduled for the fourth quarter.