South Korea Launches Alliance to Boost Shipbuilding and Shipping Competitiveness
Government and industry leaders join forces to secure global leadership and stabilize supply chains
Quick Look
South Korea has launched a new alliance between government ministries and major maritime firms to enhance the global competitiveness of its shipbuilding and shipping sectors, focusing on technology development and supply chain stability.
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An alliance for the promotion of balanced growth of the shipbuilding and shipping industries kicked off Tuesday, jointly led by the government and major companies in the sector, officials said.
The alliance was established under the so-called World-class Alliance for Vessels Production & Ecosystem strategy aimed at promoting deeper cooperation between South Korea's shipbuilding and shipping industries. It also comes as there is a pressing need for Korean companies to boost global competitiveness amid the growing importance of the maritime sector, according to the industry and oceans ministries.
The alliance comprises officials from the Ministry of Trade, Industry and Resources and the Ministry of Oceans and Fisheries, as well as those from major shipbuilding and shipping companies, including HD Hyundai Co., Hanwha Group, HMM Co. and Pan Ocean Co.
The alliance will work to devise a detailed strategy on developing cutting-edge technologies for the industries to maintain their global leadership. It also aims to help expand the production of flag carriers, secure orders for domestic shipbuilders and create a mutually beneficial industrial ecosystem that can benefit regional economies.
During the kick-off ceremony held Tuesday, three major shipbuilders, Korea Gas Corp. and the Korea Shipowners' Association signed a cooperation agreement on developing a stable liquefied natural gas (LNG) transportation system as part of efforts to stabilize South Korea's LNG supply chains amid heightened global uncertainties.
The industry and oceans ministries also agreed to bolster cooperation to better support balanced growth of the maritime sector, while joining hands for South Korea's envisioned investment in the U.S. shipbuilding sector under the two countries' bilateral tariff agreement, according to the officials.
The two ministries have already been collaborating for the development of autonomous vessels, with an aim to begin a project for developing an artificial intelligence model for such vessels this year.
