Korea to spend $534M to help shipbuilders through 2028

The Industry Ministry said Wednesday it plans to spend 710 billion won ($534 million) through 2028 in line with efforts to develop cutting-edge shipbuilding technologies, including carbon-free fuel.

Pictured is Hanwha Ocean's shipyard at Geoje, South Gyeongsang. [JOONGANG PHOTO]

The Industry Ministry said Wednesday it plans to spend 710 billion won ($534 million) through 2028 in line with efforts to develop cutting-edge shipbuilding technologies, including carbon-free fuel.

Korea has been making efforts to beef up its shipbuilding industry amid signs of recovery, with the order backlog reaching the highest level since 2011 at 39.88 compensated gross tons in October.

"The project is aimed at leading the next-generation shipbuilding industry by taking preemptive actions reflecting the demands of the industry on challenges from home and abroad," the Ministry of Trade, Industry and Energy said in a statement.

Under the plan, Korea plans to spend 200 billion won to commercialize liquefied natural gas, ammonia and hydrogen as key power sources for maritime vessels.

The country will also inject 160 billion won through 2025 to develop technologies for self-driving ships and take a leading role in setting global standards.

Korea aims to foster 3,000 shipbuilding experts to address evolving industry trends, such as carbon-free and smart technologies.

Concerning workforce shortage in the sector, the ministry plans to amend the visa policy for migrant workers and allow more foreign workers in the shipbuilding industry.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]