Busan city said on Apr. 1 that it was finally selected for the Ministry of Trade, Industry and Resources' public contest project to support strengthening global competitiveness in maintenance, repair and overhaul (MRO) for small and medium-sized shipbuilders' naval vessels.
The project aims at maintenance, repair and upgrades carried out to maintain performance and extend service life over a vessel's life cycle. Through this, it plans to secure a sustainable growth engine for Korea's small and medium-sized shipbuilding industry and strengthen the foundation for participation in the global defense supply chain.
With this selection, the city secured 25 billion won in national funds. Starting this year for five years, it plans to promote projects to boost the global naval vessel MRO capabilities of regional small and medium-sized shipbuilders and equipment companies.
It will also focus on resolving the industry's chronic labor shortage. It plans to train 2,000 practice-oriented professionals who can be deployed to worksites immediately, and to create a virtuous cycle of employment in which those trained actually find jobs by providing training allowances and hiring incentives to program graduates.
The city said that if the shipbuilding industry ecosystem is expanded through this project, it will have economic ripple effects such as ▲ production inducement of 109.9 billion won ▲ value-added inducement of 32.7 billion won ▲ employment inducement of 321 people.
Busan Mayor Park Heong-joon said, "Selection in this public contest project is a momentum that will breathe vitality into Busan's small and medium-sized shipbuilders and shipbuilding equipment companies," adding, "We will actively support the regional shipbuilding industry so it can secure new growth engines by linking with the global defense supply chain."
Meanwhile, the project will be carried out jointly by Busan, Ulsan, and South Gyeongsang Province, as well as South Jeolla Province. The Small and Medium Shipbuilding Research Institute located in Busan will lead, with Busan Techopark, Gyeongnam Techno Park, Techopark, and the Korea Marine Equipment Association participating jointly.