[Asia Exclusive] "The 'Divine Move' That Saved Hyundai Merchant Marine... Restoring Tidal Flats as Carbon-Absorbing Lungs"

Munsung-hyeok, Minister of Oceans and Fisheries

Moon Administration's 'Five-Year Plan for Shipping Reconstruction' Bears Fruit
Amid Global Logistics Crisis, National Shipping Company HMM
Plays a Reliable Support Role for Export Companies

Ministry of Oceans and Fisheries' '2050 Carbon Neutral Roadmap'
Restoration of Tidal Flat Vegetation... Enhancing Contribution to Carbon Neutrality
Aiming for UN Recognition of Carbon Reduction Measures by 2030
Targeting Net Carbon Reduction of 3.3 Million Tons by 2050
On Moves to Sanction Shipping Cartels: "We Must Not Pour Cold Water on the Shipping Industry That Has Been Revived with Difficulty"

Moon Sung-hyuk, Minister of Oceans and Fisheries, is giving an interview at the Ministry of Oceans and Fisheries in the Government Sejong Complex on the 25th of last month. / Sejong = Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kwon Haeyoung] "Saving Hyundai Merchant Marine (now HMM) through the Five-Year Plan for Shipping Reconstruction was a 'masterstroke.' Export companies are unable to secure ships due to the logistics crisis, and it is chilling to imagine if Hyundai Merchant Marine had gone bankrupt as well. For us, essentially an island nation with blocked land routes, the importance of shipping cannot be overstated."

Moon Seong-hyeok, Minister of Oceans and Fisheries, stated in an interview with Asia Economy at his office in the Government Complex Sejong on the 25th of last month, "The results of the 'Five-Year Plan for Shipping Reconstruction,' which was promoted as a national agenda by the Moon Jae-in administration, are becoming visible."

Despite some opposition, the national shipping company HMM has been deploying temporary vessels for over a year, playing a reliable support role for export companies that cannot secure ships even by paying premiums. This is regarded as the result of the current administration's steadfast push for the shipping reconstruction plan.

Regarding the Fair Trade Commission's move to sanction shipping cartels, he clearly expressed opposition, saying, "I hope there will be no cases of pouring cold water on the shipping industry that has been revived with difficulty."

Minister Moon emphasized, "We will continue to promote the 'Fishing Village New Deal 300' project to improve living conditions in underdeveloped fishing villages and link them with tourism. We will restore tidal flat ecosystems as carbon sinks to be recognized by the United Nations (UN) as carbon reduction measures by 2030, and achieve a net carbon reduction target of -3.3 million tons in the marine and fisheries sector by 2050."

- What has been the most memorable achievement in the past year?

△ The results of the Five-Year Plan for Shipping Reconstruction are emerging. Since last year, the deployment of ultra-large container ships has restored key indicators such as deep-sea container ship capacity (1.5 million TEU) to levels before the bankruptcy of Hanjin Shipping. HMM achieved an operating profit of 2.4 trillion KRW in the first half of this year, and if this trend continues, it is expected to surpass 5 trillion KRW annually. Had Hyundai Merchant Marine not been saved through the shipping reconstruction plan, we would have been mere spectators to the global shipping industry's financial feast. We will support the establishment of shipping competitiveness that is resilient to market fluctuations and lead eco-friendly and smart transitions."

- The government raised the national greenhouse gas reduction target (NDC) by 40%. What is the current status of the Ministry of Oceans and Fisheries' response to carbon neutrality?

△ The marine and fisheries sector accounted for 0.58% of the nation's total carbon emissions in 2018. It was 1% in 1990 but has decreased due to the development of eco-friendly ships and other measures. To accelerate carbon reduction, we plan to convert 28 government vessels to eco-friendly ships first. We will support the private sector's transition to eco-friendly ships and distribute energy-saving devices to fish farms and seafood processing companies. We also plan to restore tidal flat ecosystems as carbon sinks. We are preparing to announce the '2050 Carbon Neutral Roadmap for the Marine and Fisheries Sector' containing these measures.

- What is the contribution of tidal flats to carbon neutrality?

△ Our tidal flats absorb 260,000 tons of carbon annually, equivalent to the emissions of 110,000 passenger cars. The cost per ton of carbon absorption through tidal flat vegetation restoration is more than 70% cheaper than terrestrial afforestation projects. Systematic management of tidal flats can contribute to carbon neutrality. Last month, during a visit to Indonesia, we discussed climate change cooperation measures with the Minister of Marine Investment. We agreed to expand joint research and investment in blue carbon resources such as mangroves and tidal flats. Indonesia's mangrove forests have been recognized by the UN's Intergovernmental Panel on Climate Change (IPCC) as a carbon reduction measure. We aim to develop carbon sink technologies using tidal flats and gain recognition as a carbon reduction measure from both the IPCC and the UN Framework Convention on Climate Change (UNFCCC) by 2030. Through this, we will achieve a net carbon reduction of -3.3 million tons in the marine sector by 2050, surpassing net zero."

- The Fair Trade Commission is preparing sanctions for shipping companies' freight collusion, while the amendment to the Shipping Act has passed the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee subcommittee.

△ For the Fair Trade Commission to sanction shipping companies, there must be victims. However, there are none. In the relationship between shippers and shipping companies, shippers hold the upper hand. The Fair Trade Commission investigated allegations of freight collusion by shipping companies over 15 years, but no shipping company made excessive profits during that time. In fact, they received less than the announced freight rates. I hope there will be no cases of pouring cold water on the shipping industry that has been revived with difficulty. The amendment to the Shipping Act aims to clarify the Ministry of Oceans and Fisheries' authority to manage and supervise joint activities such as freight rates permitted under the Shipping Act, eliminating confusion among shipping companies. The maximum fine for unfair acts by shipping companies has been raised from 100 million KRW per case to 1 billion KRW to strengthen management and supervision. We will proceed with future procedures after fully considering the opinions of the Fair Trade Commission and others."

- Fishing villages are disappearing. What are the countermeasures?

△ According to Statistics Korea, the fishing household population decreased by 13.7% compared to the previous year in 2020, and the aging rate of those aged 65 and over was 36.1%, more than twice the national average of 16.4%. Research suggests that 80% of our fishing villages could disappear by 2045 if this trend continues. The 'Fishing Village New Deal 300' project to improve living conditions in underdeveloped fishing villages has progressed in 250 locations by this year, with about 50 more to be completed by the end of the year. We will expand the fisheries public interest direct payment system and newly promote the fishing village revitalization project to increase income and create jobs in fishing villages. To attract new workers, including young people, we will also expand support for leasing fish farms and fishing vessels and for young people returning to fishing villages."

Next year, we plan to focus on responding to fishing village extinction, carbon neutrality in marine and fisheries, strengthening marine environment management, responding to Fukushima contaminated water, enhancing marine and fisheries safety, and digital transformation in marine and fisheries.

- Concerns about seafood safety remain high due to Japan's decision to discharge contaminated water from the Fukushima nuclear power plant into the ocean.

△ We will strengthen marine environment and seafood safety measures. The number of marine monitoring points will increase from the current 39 to 45, and surveys at 22 major points will be expanded to six times a year. Radiation inspections on domestic seafood will increase from 40 to 100 species, and management of distribution history and origin control of imported products will be strengthened. We will also enhance international cooperation to ensure that the issue of nuclear contaminated water is discussed concretely and continuously in the international community, including at the London Protocol Parties' meetings.

Interview by Kim Hyunjung, Deputy Chief of Economic Department alphag@ · Organized by Kwon Haeyoung reporter roguehy@