CEOs of Big Three shipbuilders meet with Trade Minister

Korea's three largest shipbuilders will invest 234 billion won ($176.3 million) this year into the development of green maritime technologies like ammonia-powered vessels and digitization, the Ministry of Trade, Industry and Energy said Friday.

The heads of Korea's three largest shipbuilders meet with the Minister of Trade, Industry and Energy at the Four Seasons Hotel in Seoul on Friday. From left to right, Samsung Heavy Industries CEO Jung Jin-taek, Trade Minister Lee Chang-yang, Korea Shipbuilding & Offshore Engineering co-CEO Ka Sam-hyun and Daewoo Shipbuilding & Marine Engineering CEO Park Doo-sun. [YONHAP]

Korea's three largest shipbuilders will invest 234 billion won ($176.3 million) this year into the development of green maritime technologies like ammonia-powered vessels and digitization, the Ministry of Trade, Industry and Energy said Friday.

The heads of Korea Shipbuilding & Offshore Engineering (KSOE), Daewoo Shipbuilding & Marine Engineering (DSME) and Samsung Heavy Industries (SHI) met with Minister of Trade, Industry and Energy Lee Chang-yang Friday to discuss ways to resolve a chronic labor shortage in the shipbuilding industry.

Easing regulations on foreign workers and training programs were proposed, although specifics were not disclosed. Detailed plans on such measures will be announced soon, Lee promised.

The shipbuilding CEOs stressed that the labor shortage is becoming more serious as orders continue to pile up.

The CEOs also requested an increase in the limit on refund guarantees, which are advance payments paid by buyers to shipbuilders before a ship is delivered. In addition, the CEOs asked for the expansion of the application of shipbuilding materials and equipment using domestic technology.

This year's 234-billion-won plan will be spent on developing green technology such as ammonia fuel, carbon capture devices and data platforms.

Lee urged the CEOs to make preemptive investments so Korean shipbuilders can maintain their global competitiveness, and said the government will focus on policies in three areas: labor expansion, development of technology and creating a better business environment.

Lee emphasized that the government and industry should work together for the Korean shipbuilding industry.

According to Clarksons Research, a shipbuilding and shipping market analysis agency, Korean shipbuilders won orders of 1.16 million compensated gross tonnage (CGT) in July, accounting for 55 percent of worldwide orders. On a cumulative basis from January to July this year, Korean shipbuilders recorded 11.13 million CGT in orders, surpassing China’s 10.07 million CGT.

BY LIM JEONG-WON [lim.jeongwon@joongang.co.kr]