The Korean government will expand the country's shipping capacity to 140 million tons by 2030 and the capacity of national container shipping lines to 2 million TEUs.
In addition, the Korean Government has also decided to invest an additional 3.5 trillion won in improving the shipping industry, including an environmentally friendly marine fuel infrastructure fund.
On April 15, 2024, at the Emergency Economic Ministers' Conference, the Korean Ministry of Oceans and Fisheries announced "Plan to improve stability in management and development of the shipping industry". Accordingly, the Government will establish a crisis response system suitable for each shipping company to prevent the weakening of businesses; Encourage private capital to invest in environmentally friendly ships to meet environmental regulations and the trend of strengthening environmental, social and corporate governance (ESG) criteria.
This plan is prepared to strengthen Korea's maritime supply chain including logistics for exporting and importing goods by sea.
The Korean Ministry of Oceans and Fisheries ensures the competitiveness of Korean shipping companies and upgrades the crisis response system.
While continuing its efforts to 'find private owners' for responsible management of national shipping companies, the Ministry will support national container shipping companies to expand their fleets from 1, 2 million TEU to 2 million TEU by 2030. For the country's major shipping companies, the Ministry will also pursue the goal of achieving 'Net-Zero' and complete decarbonization soon.
The Korean Ministry of Oceans and Fisheries also encourages and supports the autonomous route adjustment and development of new routes by coastal shipping companies as market competition becomes increasingly fierce, thereby increasing profits. profits and business diversification to improve logistics efficiency.
The scale of support for small and medium-sized shipping companies with relatively weak crisis response capabilities will also double to 500 billion won. A customized support system will be established to provide financial services tailored to the business performance and financial condition of each transportation company.
The expansion of the tonnage tax system will also be promoted in 2024 to reduce the initial burden of ensuring ship safety and help stabilize management during low market times. The tonnage tax system is a tax system based on the tonnage of ships and the number of operating days during which shipping companies operate profitably. European shipping countries began applying this tax system in the 1990s to enhance the competitiveness of the shipping industry.
In addition, the state project on providing ships also plans to diversify ship types including car carriers; The government is also considering establishing specialized companies in this field.
Based on the plan to improve the stability in management and development of the shipping industry prepared this time, the Korean government and private economic sector will work together to proactively improve companies. national shipping; thereby promoting the country's shipping industry to overcome the current crisis and develop more sustainably.
