On the 12th, inside the Koreamade plant quay at the Sanjeong Agro-Industrial Complex in Mokpo, South Jeolla. Construction of Dongwon Industries' distant-water fishing vessel "DANURI" was in full swing. On deck, workers were inspecting the piping, and inside the vessel, finishing work was underway on a space that will be used as a dining room.
DANURI is a 2,000-ton tuna purse seiner newly ordered by Dongwon Industries to replace aging distant-water vessels. In May 2024, Dongwon Industries signed a newbuild contract with Koreamade for two 2,000-ton purse seiners. A purse seiner is a vessel that encircles schools of fish such as tuna with a long, rectangular net. Tuna purse seiners that use ultra-large nets mainly catch skipjack and yellowfin tuna and are considered among distant-water vessels to be ships with high levels of equipment.
◇ Delivery set for August… first distant-water vessel to carry remote monitoring
DANURI was launched on Mar. 30 and is currently undergoing finishing work. The scheduled delivery date is Aug. 30. For the second vessel, block fabrication is underway at Koreamade's factory in the Sapjin Industrial Complex in Mokpo, targeting delivery next year.
DANURI will be the first distant-water vessel to be equipped with a remote monitoring system. Because the vessel's condition can be checked in real time from shore, it enables close, on-site management and is expected to help prevent safety accidents. Living facilities on board have also been improved compared with existing distant-water vessels. The goal is to ensure the best possible rest conditions for crew members who work for long periods on the high seas.
Aging distant-water vessels are a factor that undermines both crew safety and operational competitiveness. According to the Ministry of Oceans and Fisheries, 80% of Korea's distant-water vessels are over 30 years old. Older ships often have cramped interiors and poor living conditions, including dining rooms and sleeping quarters. For crew members who must live aboard for close to a year once they sail, deteriorated onboard environments are a major source of stress.
Deploying newbuilds is also effective in terms of catch quality and expense. New freezing facilities and fish holds help maintain the freshness of the catch. Installing new engines can improve fuel efficiency to reduce operating expense and also lower carbon emissions.
The problem is expense. The construction expense for each purse seiner ordered by Dongwon Industries is 50 billion won per vessel. A total of 100 billion won is being invested to build two new vessels. Although Dongwon Industries is one of Korea's leading distant-water fishing companies, ship newbuild expense is no small burden for operators.
◇ Half the construction cost interest-free… 10 newbuilds through the safety fund
To ease this burden, the government operates a "distant-water vessel safety fund." Dongwon Industries also received safety fund support when it signed the newbuild contract for DANURI. For half of the shipbuilding expense, or 25 billion won, the government fund reduces the interest burden.
The Ministry of Oceans and Fisheries introduced the safety fund program in 2019 to improve the safety of distant-water vessels and enhance crew welfare. For vessels that replace aging boats, it provides up to 50% of the construction amount as an interest-free loan for 15 years. The terms are a three-year grace period and 12 years of repayment.
So far, a total of eight distant-water vessels have been built with safety fund support, and two are under construction. Until the support money is fully repaid, the World Fund acts as the shipowner, and once repayment is complete, ownership is transferred to the operator.
This year, Silla, considered one of Korea's three major distant-water fishing companies along with Dongwon Industries and Sajo Industries, also plans to build a new purse seiner with safety fund support. However, Silla is reportedly negotiating a newbuild contract not with a domestic shipbuilder but with a Taiwanese company.
Some in the industry express regret that newbuild projects benefiting from government support are going to overseas shipbuilders. Because public funds are being used, some say it needs to be tied to securing work for domestic shipyards. In response, an official at the Ministry of Oceans and Fisheries (MOF) said, "To help secure work for domestic shipyards, we give extra points during the Investment Deliberation Committee review to companies that contract with domestic shipyards," but added, "We do not restrict contracts with overseas companies."
The government plans to pursue a coastal and inshore fishing vessel modernization project modeled on the distant-water vessel safety fund. The judgment is that not only distant-water vessels but also coastal and inshore vessels need to be larger and modernized, as they, too, face aging fleets, labor shortages and safety issues. Hwang Jong-u, Minister of the Ministry of Oceans and Fisheries, said at a press briefing on the 14th of last month, "We will also prepare a structural innovation plan for coastal and inshore fisheries to build larger and more modern fishing vessels and move quickly to improve the fundamentals of the fisheries industry."