LNG carrier built by Samsung Heavy Industries. /Courtesy of Samsung Heavy Industries

The government is developing joint projects with the three domestic shipbuilding companies. To evade the intensifying competition from China, the aim is to identify areas where collaboration is needed over competition among the three companies, with the government prioritizing support. Ideas such as developing technology for acquiring international standards from the International Maritime Organization (IMO) and jointly preparing training programs for foreign personnel are being discussed as candidates for collaborative projects.

According to the government on the 21st, the Ministry of Trade, Industry and Energy plans to select and announce joint projects in collaboration with the domestic shipbuilding industry as early as next month. The projects are expected to include technology development related to the joint needs of the three shipbuilding companies, including HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering). The Ministry held a meeting with the Chief Technology Officers (CTOs) of these companies on Dec. 6 last year.

The Ministry launched the "K Ship Next-Generation Initiative" in March last year to support the domestic shipbuilding industry. This established a collaborative system involving not only large and medium-sized shipyards but also the Korea Shipbuilders' Association and research institutions, among other experts. At that time, the Ministry decided to hold quarterly meetings with the CTOs of the three shipbuilding companies to discuss technology cooperation.

A government official noted, "Given that domestic shipbuilding corporations have fiercely competed against each other in the past, it has not been easy to foster collaboration. However, as China is now chasing after advanced ship technologies, we have come together with a shared intent to maintain our leadership position through collaboration."

At the meeting, the three companies suggested the need for joint technology development to secure international standards from the IMO for high-value-added vessels such as autonomous eco-friendly ships and autonomous ships. They also proposed the joint development of a foreign training system that simulates welding through virtual reality (VR) and augmented reality (AR) technologies, as the shipbuilding industry is struggling with a shortage of personnel and implementing policies to attract foreign workers.

The Ministry is set to comprehensively review the project candidates submitted by the corporations and finalize its decisions soon, planning to offer support. The budget allocated for this purpose for the Ministry this year is approximately 180 billion won. A Ministry official stated, "In the future, we will continuously identify high-demand items for corporations and prioritize supporting what the three companies commonly need."

Separately, the Ministry is also planning to discuss additional cooperation measures among the three companies during the process of preparing a Korea-U.S. shipbuilding cooperation package. A Ministry official explained, "The schedule for discussions on cooperation measures with the United States has not yet been finalized," adding, "After the Trump administration is inaugurated, we will first ascertain specific interests from the U.S."

On the 9th, the government stated that it would prepare a Korea-U.S. shipbuilding cooperation package after receiving a request from the U.S. for collaboration in ship maintenance, repair, and overhaul (MRO) services with the domestic shipbuilding industry.