Increased Collaboration between South Korea and Japan as the U.S. Focuses on Disrupting China's Shipbuilding Sector - Will their Efforts Prove Fruitful?
South Korea's newly-elected President, Lee Jae-myung, has unveiled a comprehensive plan to support and improve the nation's struggling shipbuilding industry. The blueprint for these measures can be found in the 'New Government Growth Policy Guide'.
The plan focuses on three key areas: vessel development, production improvements, and the promotion of future vessels.
1. **Vessel Development and Future Vessels**: The government aims to foster the development of innovative, future-oriented vessels, including autonomous and eco-friendly ships. This will be achieved through the use of cutting-edge technology such as digitalization, automation, and enhanced personnel training and working conditions [1].
2. **Production Improvements**: The guidelines emphasize the importance of streamlining production processes and enhancing efficiency to maintain competitiveness in the global market [1].
3. **Support for Small Shipbuilders and Industry Cooperation**: Although not explicitly detailed in the 'New Government Growth Policy Guide', the government has also expressed its intention to support small and medium-sized shipbuilders by enabling them to enter the U.S. Maintenance, Repair, and Operations (MRO) market. This strategy involves creating a system where large companies focus on ship construction, while smaller ones handle MRO tasks, fostering cooperation between Korean and U.S. shipbuilding industries [3].
President Lee Jae-myung has made it clear that his vision for the shipbuilding industry extends beyond traditional methods, with the goal of creating a maritime power that leads the world, not just a shipbuilding powerhouse [2]. The promotion of future vessels will be a key component of this ambition.
It is important to note that while the guidelines outline the government's intentions, specific policies or bills in support of the shipbuilding sector have yet to be passed [4]. President Lee Jae-myung took office a month ago, and the implementation of these measures is expected to unfold in the coming months.
Sources: [1] Eon Hwang, a Seoul-based shipbuilding analyst at Nomura, as quoted in various media outlets. [2] Statements made by President Lee Jae-myung during his campaign. [3] Unnamed sources within the Korean government, as reported by Korean media outlets. [4] Statements by the Korean government regarding the status of passed policies or bills in support of the shipbuilding sector.
- The government's vision for the shipbuilding industry, as outlined in the 'New Government Growth Policy Guide', also includes a focus on the aerospace sector, aiming to utilize advancements in this industry for the development of innovative and eco-friendly ships.
- To further boost South Korea's economy, the newly-elected President, Lee Jae-myung, has signaled his intention to foster the finance sector's involvement in the growth of the shipbuilding industry, with an emphasis on facilitating cooperation between Korean and international finance institutions for long-term investments.
