Lee pledges stronger support for shipbuilding industry, including financial backing

President Lee Jae Myung on Wednesday pledged stronger government support for Korea’s shipbuilding industry, vowing to stabilize employment, address chronic labor shortages and expand state-backed financial support.

President Lee Jae Myung speaks during a meeting on the future vision of Korea’s shipbuilding industry held at Hotel Hyundai by Lahan Ulsan on May 13. [NEWS1]

President Lee Jae Myung on Wednesday pledged stronger government support for Korea’s shipbuilding industry, vowing to stabilize employment, address chronic labor shortages and expand state-backed financial support as Seoul seeks to reinforce one of the country’s key export sectors amid intensifying global competition.

Speaking at a roundtable on the future of Korean shipbuilding held at Hotel Hyundai by Lahan in Ulsan, Lee said the sector had become one of Korea's defining industries. “When I meet with leaders of other countries these days, almost every coastal nation says it is looking to cooperate with Korea on shipbuilding,” he said. But he acknowledged the industry's structural vulnerability, particularly noting that employment becomes a recurring problem as the sector swings between boom and bust. “Because the industry is exposed to these risks, the government's role and efforts are critical,” he said.

Shipbuilding is a notoriously cyclical industry, with order backlogs and labor shortages during upturns giving way to severe slowdowns and work force reductions during downturns.

Representatives from smaller shipyards and parts suppliers in regional areas said they simply could not find workers these days. “The reason we hire foreign workers is not just about wages — it's that we cannot find Korean workers,” said one industry representative at the meeting.

Lee responded by pledging to address the issue through tax incentives, infrastructure investment and improved living conditions in regional areas. “Making the regions more attractive and easing the concentration in the Seoul metropolitan area is a core government task — so look forward to it,” he said.

President Lee Jae Myung, center, looks at a liquefied natural gas carrier at Korean shipbuilding company HD Hyundai Heavy Industries in Ulsan on May 13. [JOINT PRESS CORPS]

Midsize shipbuilders flagged a shortage of refund guarantees — financial instruments issued by banks that protect buyers if a shipyard fails to deliver a vessel — saying inadequate support from state-run banks was forcing them to turn down orders even during boom times.

“The government is already spending heavily on job creation and regional economic development, so [support for refund guarantees] seems like it would cost less,” responded Lee. “We can look into ways for the government to absorb the risk with public finances.”

Safety on the factory floor also came up. Companies said they were exploring AI-based video and sensor systems to prevent accidents, but that labor opposition was blocking implementation — workers arguing the technology amounted to real-time surveillance.

In response, Lee said, “I am also doing everything I can to reduce fatal workplace accidents,” and suggested that “a compromise could be reached, such as not using footage captured on video as grounds for disciplinary action or automatically deleting it.”

The roundtable also brought parts suppliers, workers and government officials. Industry Minister Kim Jung-kwan outlined a strategy to counter China's state-driven shipbuilding expansion and Japan's industry revival, proposing what he called a “K-Shipbuilding core reinforcement” plan and the creation of a “K-Shipbuilding alliance” with countries including the United States, India, Vietnam and Saudi Arabia, alongside investment in future technologies such as AI-powered autonomous vessels.

Lee closed the meeting by reiterating his commitment to balanced regional development. “The shipbuilding industry clearly plays a major role in regional growth and local economic vitality,” he said. “We are thinking about strengthening support the further you go from the greater Seoul area, and building new industrial bases in the southern and central regions.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY NAM YOON-SEO [lee.jian@joongang.co.kr]