Seoul: The oceans minister announced on Monday that the South Korean government will closely monitor the impact of shifting U.S. trade policies on the nation's shipping industry, with an aim to develop measures ensuring stable operations for local shippers.
According to Yonhap News Agency, Oceans Minister Kang Do-hyung revealed at a press conference that, while no specific issues regarding the shipping of export and import goods have been reported so far, the government remains vigilant. Kang highlighted concerns that U.S. President Donald Trump's protectionist trade measures, including new tariffs, may exert long-term "downward pressure" on shipping costs, which could negatively affect the financial performance of shipping firms.
Kang explained that although U.S. tariffs might initially increase ocean freight rates, they could ultimately lead to decreased global trade, reducing demand for cargo shipping. He also expressed concerns that the incoming U.S. administration might undermine efforts to establish a carbon-free shipping corridor between South Korea and the United States by 2027, given Trump's focus on fossil fuel usage over clean energy initiatives.
In 2022, South Korea and the U.S. had agreed to jointly operate a "green shipping route" between ports in South Korea's Busan and Ulsan and Washington State by 2027. This route aims to achieve zero carbon emissions by employing environmentally friendly technologies and non-carbon fuels. Kang emphasized the importance of ongoing dialogue with the U.S. to highlight the mutual benefits of this project.
Furthermore, Kang mentioned that the government intends to advocate for South Korean companies' interests if a global carbon tax is implemented, aiming to minimize the tax per ton of carbon emissions. The International Maritime Organization plans to discuss the introduction of such a tax in 2027 with its member states.
Addressing recent fishing boat accidents, Kang noted that the ministry is working to enforce safety measures. Last week, a fishing boat caught fire near Buan, resulting in two deaths, five missing individuals, and five rescues. Another accident off Jeju Island led to two deaths, three missing persons, and five rescues. In 2024, fishing boat accidents resulted in 119 deaths, a significant increase from the previous year and the highest since 2014.