Seoul: The government will provide financial support for projects aimed at building icebreakers that will run through Arctic shipping routes, the oceans minister said Thursday, as South Korea plans to begin pilot operations on the envisioned Northern shipping corridors next year.
According to Yonhap News Agency, Minister Chun Jae-soo announced that South Korea will invest 11 billion won (US$8 million) per vessel built with icebreaking capabilities for operation on the Arctic shipping routes. The Ministry of Oceans and Fisheries has allocated funds for the project in next year's budget. Chun projected that icebreakers will be able to operate in the Arctic corridors in earnest from 2030, citing a study conducted by Pohang University of Science and Technology (POSTECH).
The ministry has earmarked a budget of 7.3 trillion won, including 1.66 trillion won for expanding and enhancing port infrastructure in the southeastern region, anticipating the expansion of the Northern shipping routes. The Lee Jae Myung administration aims to transform the southeastern port city of Busan and its surrounding region into a global maritime hub, with plans to relocate the headquarters of the oceans ministry to Busan by the end of this year.
Chun stated that renovations for the new headquarters in Busan will commence next month, marking the "first step" in transforming the southern region into a global maritime hub. The ministry will also encourage local shipping companies to relocate to Busan, offering various incentives, and is working to establish a new maritime court and an investment corporation for the southeastern region.
Additionally, Chun will head a government task force to prepare the country for the envisioned era of Arctic shipping routes, advocating for a public-private committee and a support organization for related projects. The ministry plans to exempt preliminary feasibility studies for developing core technologies in autonomous AI-powered ships and begin constructing a test bed for smart port technologies in Gwangyang.
Regarding media reports on POSCO Group's potential acquisition of HMM Co., Chun emphasized the issue should be viewed through the lens of national interest. The Korea Shipowners' Association has expressed opposition to POSCO's purported bid, claiming it could disrupt South Korea's shipping ecosystem.
On the ongoing water release from Japan's Fukushima nuclear power plant, Chun noted no safety breaches have been reported, but the government will continue monitoring radioactive material levels in waters around the Korean Peninsula as a precaution.