The South Korean government plans to expand maritime transport capacity to 140 million tons by 2030. Additionally, it has decided to increase the national shipping fleet to 2 million TEUs, According to businesskorea.
The Ministry of Oceans and Fisheries unveiled the “Plan for Stabilizing Management and Improving Vitality of the Maritime Industry” during an emergency meeting of economic ministers held on April 15.
In addition to the 3 trillion won management safety net announced in November 2022 as part of the “Plan to Strengthen Competitiveness in the Maritime Industry,” this plan includes an additional investment of 3.5 trillion won to improve the financial health of national shipping companies.
The investment amount for expanding the shipbuilding support program stands at 2 trillion won, with an allocation of 1.1 trillion won for the funds for the establishment of eco-friendly bunkering infrastructure.
The government plans to extend tonnage tax systems to alleviate the initial burden of ship acquisition and to assist in stabilizing management during low-demand periods. Tonnage tax is a corporate tax system based on the tonnage and operating days of ships owned by shipping companies. It was introduced by European shipping countries in the 1990s to enhance the competitiveness of their maritime industries. Since its initial implementation in 2005, South Korea has operated tonnage tax under a five-year sunset provision. Support will be provided to increase the stock space of national container shipping companies’ fleets from the current 1.2 million to 2 million TEUs by 2030.
