"K-Korean Shipbuilding Order Backlog 200 Trillion"... Ministry of Trade, Industry and Energy Prepares Measures to Strengthen Shipbuilding Materials and Components

The 21st Joseon Haeyang Day Commemoration Ceremony Held

Oil tanker built by a domestic shipyard

Domestic shipbuilding companies have recorded an order backlog worth 200 trillion won, equivalent to 3 to 4 years of work. The Ministry of Trade, Industry and Energy plans to prepare a 'Plan to Strengthen Materials, Parts, and Equipment (MPE) for the Shipbuilding Industry' within this year.

On the 11th, the Ministry of Trade, Industry and Energy held the '21st Shipbuilding and Offshore Days' commemorative event at EL Tower in Yangjae-dong, Seoul, attended by about 250 people from the shipbuilding and offshore plant sector, including Park Seong-taek, 1st Vice Minister, and Choi Seong-an, Chairman of the Korea Shipbuilding & Offshore Plant Association (CEO of Samsung Heavy Industries). The event was also attended by Kim Seong-jun, CEO of HD Hyundai Heavy Industries, Kim Jong-seo, President of Hanwha Ocean, and Yoo Sang-cheol, CEO of HJ Heavy Industries.

Shipbuilding and Offshore Days was designated as a related commemorative day on September 15, 1997, when ship orders surpassed 10 million tons, and the ceremony has been held since 2004. At the event, a total of 33 people received government commendations for their contributions to the development of the shipbuilding and offshore industry, including Vice President Jang Hae-gi of Samsung Heavy Industries, who was awarded the Silver Tower Industrial Medal, and Vice President Jeon Seung-ho of HD Hyundai Heavy Industries, who received the Bronze Tower Industrial Medal.

In his congratulatory speech, Vice Minister Park stated, "Our shipbuilding companies have secured stable orders worth about 200 trillion won for 3 to 4 years through orders for high value-added vessels such as liquefied natural gas (LNG) carriers and large container ships," and introduced future key policy directions. According to the Ministry of Trade, Industry and Energy, as of the end of July, the order backlog of domestic shipbuilders stood at 39.11 million CGT (Compensated Gross Tonnage).

The ministry decided to further improve the biggest challenges in the shipbuilding industry, such as labor shortages and difficulties in issuing Refund Guarantee (RG) for advance payments. It will closely monitor the RG issuance status of small and medium-sized shipbuilders and consider additional improvement measures if necessary. To address difficulties in securing skilled workers in the shipbuilding field, the ministry plans to soon prepare measures to enhance the utilization of foreign labor in consultation with the Ministry of Justice.

To help companies secure a technological competitive edge, the ministry plans to steadily promote the 'K-Shipbuilding Superiority Vision 2040,' announced last July, starting with the 'Top 10 Flagship Projects' such as liquefied hydrogen carriers and autonomous ship operation platforms.

The ministry emphasized that to improve the MPE ecosystem of the shipbuilding industry, which still heavily depends on overseas core parts, it will prepare a 'Plan to Strengthen MPE for the Shipbuilding Industry' within this year to focus on fostering a 'Super Eul (乙) Shipbuilding Equipment Industry' and enhance the competitiveness of the entire shipbuilding industry value chain.