Extension of Domestic Coastal Transport for Foreign-Flagged Car Carriers Accepted Following Gyeonggi Province's Request

As the central government has accepted Gyeonggi Province's request to extend the domestic coastal transport permit period for foreign-flagged car carriers, tangible benefits are expected for domestic automobile exporters, including improved transport efficiency, faster customs clearance, and reduced logistics costs.

On June 30, Gyeonggi Province announced that the Ministry of Oceans and Fisheries had decided to extend the coastal transport permit period for foreign-flagged car carriers transporting export and import vehicles by three years, until June 30, 2028.

This measure was taken in response to a request raised by export companies at the "Emergency Economic Meeting to Respond to Trump Tariffs," which was presided over by Governor Dongyeon Kim at Pyeongtaek Port at the end of March. Since then, Gyeonggi Province has continued discussions with the Ministry of Oceans and Fisheries regarding the extension of the coastal transport permit period.

According to the current Maritime Transport Act, only Korean-flagged vessels are allowed to transport cargo between domestic ports, while foreign-flagged vessels used for exports are not permitted to do so.

As a result, foreign-flagged vessels have had to transfer vehicles to Korean-flagged vessels for domestic transport between ports, and then re-load them onto foreign-flagged vessels, creating inefficiencies. To address this, the government has allowed foreign-flagged vessels to transport vehicles between domestic ports for export purposes at nine ports nationwide, including Pyeongtaek Port, with the permit renewed every three years. However, as the sunset date for this measure was set for June 30 this year, companies were increasingly concerned.

In response, Gyeonggi Province requested the Ministry of Oceans and Fisheries to extend the coastal transport permit period so that foreign-flagged car carriers could freely transport vehicles between domestic ports. As a result, the extension has been confirmed until June 2028. With this regulatory improvement, inter-terminal transport of export and import vehicles is now possible at nine ports, including Pyeongtaek.

Gyeonggi Province Governor Dongyeon Kim is presiding over the joint public-private emergency economic meeting to respond to Trump tariffs at Pyeongtaek Port last March. Provided by Gyeonggi Province

Along with this permit extension, the Ministry of Oceans and Fisheries has also extended the exemption from the age limit (15 years) for car carriers used for exports by three years, until June 2028, further strengthening the port competitiveness of Pyeongtaek Port, the main hub for vehicle exports.

Meanwhile, Gyeonggi Province is focusing on ensuring that the "follow-up measures to respond to Trump tariffs," which have been pursued since the Pyeongtaek Port roundtable in March, produce visible results.

First, special management funds have been provided to export companies affected by tariffs, and as of the end of June, support has been approved for 90 companies, totaling 39.9 billion won. In addition, to minimize risks from rapid exchange rate fluctuations, the province is implementing the "Gyeonggi SME Exchange Rate Insurance Support" program. As of the end of June, insurance premiums totaling 1.186 billion won have been provided to 81 companies. Furthermore, starting July 1, the eligibility for this insurance has been expanded from only export companies to include import companies as well.

To support the diversification of export markets for small and medium-sized enterprises, three additional Gyeonggi Business Centers (GBC) were established in June this year, including in Vancouver, Canada. In the second half of the year, five more centers will be opened, including one in Dallas, United States.

In addition, business support is being provided to auto parts companies seeking to enter the eco-friendly vehicle market. Starting in July, training programs will be implemented to nurture specialists in parts development, and support will also be provided for obtaining overseas certifications for eco-friendly vehicle parts.