Subsidies Covering 10% of Vessel Price and Up to 2 Percentage Points Reduction in Acquisition Tax
Eligible Vessels: Grade 3 or Higher, Including LNG, Electric, and Hybrid Systems
The Ministry of Oceans and Fisheries will promote a subsidy support program to help small and medium-sized coastal shipping companies introduce eco-friendly vessels. The aim is to accelerate greenhouse gas reduction in the coastal shipping sector in line with carbon neutrality policies.
On February 26, the ministry announced that it will be inviting coastal shipping companies to participate in the "Eco-Friendly Certified Vessel Supply Support Program" from February 27 to May 22.
The "Eco-Friendly Certified Vessel Supply Support Program" has been implemented since 2021 to encourage domestic coastal shipping companies to introduce eco-friendly vessels in response to the global trend toward carbon neutrality. Up to last year, the ministry supported the introduction of a total of 22 eco-friendly vessels, with the support amount reaching 51.4 billion won.
Eligible applicants are coastal shipping companies that, as of the announcement date, have signed a shipbuilding contract in the current year or the previous year and are building or have completed the construction of an eco-friendly certified vessel of grade 3 or higher, powered by liquefied natural gas (LNG), electricity, or a hybrid propulsion system. Eco-friendly certification is granted in grades from 1 to 5, taking into account factors such as technological difficulty, the proportion of each type of fuel used, the reduction rate of air pollutants, and the localization rate of equipment.
Selected companies can receive subsidies within the budget limit at a standard support rate of 10% of the vessel price, depending on the certification grade and shipbuilding cost. In addition, they will be granted a reduction in acquisition tax of up to approximately 2 percentage points of the vessel price.
Details such as eligibility and application procedures can be found on the websites of the Ministry of Oceans and Fisheries and the Korea Maritime Transportation Safety Authority.
Lee Suho, Director General of Maritime Safety at the Ministry of Oceans and Fisheries, said, "The Eco-Friendly Certified Vessel Supply Support Program is an important policy tool for implementing the 2035 Nationally Determined Contribution (NDC) on greenhouse gas reduction," adding, "We will accelerate the transition to carbon neutrality in the shipping sector through subsidies and tax benefits."
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