[Asia Economy Sejong=Reporter Dongwoo Lee] The government is reviewing the feasibility of selling the management rights of the national shipping company HMM. To realize a new maritime powerhouse, it is taking steps to enhance the competitiveness of the international logistics industry, including establishing a 3 trillion won shipping management safety net.
On the 4th, the Ministry of Oceans and Fisheries reported the '2023 Work Plan' containing these details to President Yoon Suk-yeol. With HMM's management returning to normal, the ministry plans to jointly conduct consulting with related agencies to review the feasibility of selling the management rights and analyze potential acquisition candidates. However, considering the deteriorated shipping market conditions, verification of acquisition candidates, and requirements for securing future competitiveness in the shipping industry, the ministry intends to proceed cautiously with the sale.
Minister of Oceans and Fisheries Cho Seung-hwan stated, "Although no specific schedule has been set, the Financial Services Commission, Korea Development Bank, and Korea Ocean Business Corporation are continuously discussing how to plan the sale while reviewing various factors such as uncertainties in our shipping market, economic conditions, and securities market trends. However, there will be no rushed sale without consultation with related agencies."
Expanding Shipping Capacity to 120 Million Tons by 2027
A 3 trillion won shipping management safety net will also be established. This includes a 1 trillion won crisis response fund, 300 billion won in management stabilization funds, and public shipowner projects to prevent the undervalued overseas sale of vessels. To increase the transport capacity of national shipping companies, the shipping capacity will be expanded to 120 million tons by 2027, approximately a 30% increase from last year's 93 million tons.
The development of Busan New Port and Jinhae New Port into ultra-large smart mega ports will be accelerated. Automated ports will also be established at Incheon Port, Incheon New Port, and Gwangyang Port. In the port hinterlands, supply will be expanded and regulatory innovation throughout the entire process will attract 1.4 trillion won in private investment. To innovate the logistics system, smart joint logistics centers will be constructed at Busan Port and Incheon Port.
To capture the global maritime mobility market, expected to grow to 740 trillion won by 2030, efforts will be strengthened to secure cutting-edge technologies in autonomous ships, eco-friendly vessels, and digital maritime traffic platforms. Additionally, a complex marine leisure tourism city, dubbed the Korean-style Cancun, and K-Marina routes will be developed, along with a marine leisure tourism belt along the southern coast to revitalize the marine leisure tourism industry.
Fostering 100 Blue Food Export Companies with $10 Million in Sales
As part of the export-oriented blue food industry promotion plan, six smart aquaculture clusters will be established, and a smart fish market operation system will be introduced. Blue food is gaining global attention as a sustainable health food. Last year, South Korea's seafood product exports reached a record high of $3.1 billion. The Ministry of Oceans and Fisheries plans to develop high value-added foods aligned with the latest consumer trends, develop future food technologies such as alternative seafood using seaweed and cultured seafood meat, and build infrastructure for seafood product development and processing, including large-scale seafood product clusters by region.
The ministry aims to nurture 100 blue food export companies each achieving $10 million in exports and provide growth ladder vouchers supporting market research, brand development, and international certification acquisition, offering up to 220 million won per company to foster domestic companies into exporters.
To create livable islands and coastal areas, support for marginalized island and coastal residents will be strengthened. To guarantee basic transportation and logistics rights for island residents, starting this year, passenger ships will be deployed to islands without regular stops, aiming to eliminate neglected islands. Additionally, surcharges on parcel delivery fees caused by loading fees for delivery vehicles will be reduced to ease the additional burden on island residents. To revitalize fishing villages and ensure sustainable growth, 3 trillion won will be invested over the next five years to dramatically build economic, living, and safety infrastructure.
Minister Cho said, "To overcome the current economic crisis and achieve South Korea's leap forward, we will focus all organizational capabilities with the determination to industrialize all maritime sectors into export and future industries."
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