Industry Minister Kim Jung-kwan on Wednesday vowed active support for the growth of small- and medium-sized shipbuilders and shipbuilding equipment manufacturers.

Kim made the pledge in a meeting with executives from the companies in the southeastern port city of Busan, saying the government will invest 500 billion won ($332.3 million) in the AI transformation of the shipbuilding sector, according to the Ministry of Trade, Industry and Resources.

The government will also work to develop U.S. investment projects that Korean shipbuilding equipment manufacturers and small-sized shipbuilders can participate in under the MASGA initiative, Kim said. MASGA refers to the “Make American Shipbuilding Great Again” proposal, one of the major projects that helped Korea secure its tariff agreement with the United States last year.

In addition, the government will also encourage Korean firms’ overseas expansion into countries such as India, Vietnam and the Philippines, where demand for shipbuilding equipment has recently been increasing, and work to expand refund guarantees for small- and medium-sized shipbuilders for their overseas business, he added.

“Shipbuilding equipment companies and small- and medium-sized shipbuilders are the foundation of the K-shipbuilding supply chain and, furthermore, a core industry for our maritime security,” the minister said.
Source: Korea JoongAng Daily