The South Korean government announced a new round of financial support for the country’s shipbuilding sector during a recent visit by the Deputy Prime Minister and the Minister of Strategy and Finance to the Hanwha Ocean yard in Geoje-si. The extra support comes at a time when the Korean shipbuilding industry has struggled with fewer orders, rising costs and more competition, according to The Maritime Executive.

As part of the country’s three-pronged plan, the amount of government support issued for ship construction will increase from $91 million to $300 million, the country’s first financial expansion for the sector since 2019. South Korea will also expand its employee training support programs by providing up to $6,000 in payments to workers.

Support for research and development (R&D) is expected to grow as well with the government planning to provide over $20 million to continue developing leadership roles and strategies in the high-value segments of Korea's shipbuilding sector.

Government officials said that South Korea's shipbuilding industry contributed over $9.2 billion to the country's export volumes during the first half of 2023, a 12% year-on-year increase. The country’s total order book is expected to be close to 39 million compensated gross tons, the highest level seen in South Korea since 2011.