Liquefied natural gas (LNG) carriers are one of the types of ships that South Korea, which ranks first in the world in shipbuilding, produces best. Currently, over 50% of the domestic shipbuilding industry's revenue comes from LNG carriers.
However, the core technology of LNG carriers, the LNG storage tank (cargo hold) technology, is not ours. This technology is currently monopolized by the French corporation GTT. Domestic shipbuilders pay GTT a royalty of 5% of the ship price each time they deliver an LNG carrier. This amounts to approximately 10 billion to 20 billion won per ship.
The cargo hold technology is evaluated to have high technological scalability, not only for LNG but also for next-generation cargo holds such as liquefied hydrogen and ammonia. To localize the technology, HD Hyundai and Samsung Heavy Industries are currently conducting research and development (R&D) on a Korean-style cargo hold model. While they have completed proof-of-concept for medium to small-sized vessels, they have yet to conduct any proof-of-concept for the cargo hold technology for large LNG vessels.
◇ 15 next-generation strategic technologies selected to lead Korea
On the 22nd, the government presented a goal to actively support the development of Korean-style LNG cargo hold technology at domestic shipyards, aiming to build two ships by 2028 in the 'New Government Economic Growth Strategy, 15 Major Projects for Ultra-Innovation.'
The 15 major projects for ultra-innovation aim to select next-generation strategic technologies that will lead the world and to foster these areas at the government level to secure a competitive advantage in the technology landscape.
Specifically regarding LNG cargo holds, plans are to support the development of automated production processes for insulating panels for Korean-style cargo holds by the second half of this year. Starting next year, there will also be a plan to accompany the advancement of materials and components for cargo holds along with large-scale financial support.
A government official noted, 'We will secure a track record (proof-of-concept results) for Korean-style LNG cargo hold technology to prevent the outflow of national wealth and establish a leading position in future market technologies.'
Support will also be provided for the development of core technologies for silicon carbide (SiC) power semiconductors, which consume less power and significantly reduce heat compared to existing silicon semiconductors. The goal is to raise the self-sufficiency rate of SiC semiconductor technology to 20% by 2030 through comprehensive support. Educational programs to nurture specialized talent in compound power semiconductors will be promoted at eight universities, including Seoul National University and Sungkyunkwan University, and support will be provided for R&D across the entire strategic semiconductor supply chain and product development.
An ambitious goal was also presented to develop superconductors with zero energy loss during power transmission to brand it nationally. Superconductors are materials that completely eliminate electrical resistance when cooled below a certain temperature. Currently, domestic researchers are pursuing the development of high-temperature superconducting magnet technology that can be utilized in the medical, advanced bio, and nuclear fusion fields.
The government will also support the development of 'graphene' materials that are thinner than paper but stronger than steel, as well as next-generation special carbon steel materials. A goal was also proposed to improve renewable energy generation efficiency by supporting the development of next-generation solar and offshore wind power technologies.
◇ K-content exports to double in 8 years… the key is AI
The goal is to increase K-content exports, which were $13.2 billion in 2022, to $25 billion by 2030, by promoting the expanded use of AI in the content industry. Support will be provided for the development of new technologies that will change the paradigm of the content industry, such as AI and the metaverse, and training for specialized personnel in AI production for content will also be expanded.
Efforts will be made to encourage innovation in the smart agriculture and fisheries industry to enhance productivity in the primary sector. By the second half of this year, a 'special committee' will be established to support the transition to AI in the agricultural sector, and a fusion research group will be established in the fisheries sector.
In the bio and pharmaceutical sectors, AI will be utilized for new drug development and gene therapy research. A government official stated, 'In the bio sector, the direct sales model for finished goods, such as new drugs, creates added value, but due to the high risks of Phase III clinical trials, technology development in Korea is still focused on technology transfer.' They added, 'To facilitate the transition to a high-value-added industrial structure, we will secure large-scale funding for concentrated investment.'
Support will also be provided for the rapidly growing K-beauty (cosmetics) sector, centered around small and medium-sized enterprises. This year, a 'Beauty Cluster Target Region' will be selected, and a basic nurturing plan will be established. There are plans to actively support the development of 'halal' certified products targeting the Middle East and other Islamic cultural regions with significant market potential.