South Korea will invest 260 billion won (US$179 million) to develop cutting-edge shipbuilding technologies this year as part of efforts to bolster the global competitiveness of its shipbuilding industry, the industry ministry said Tuesday, according to Yonhap.
The proposed amount marks a 40 percent increase from the corresponding budget for 2024, according to the Ministry of Trade, Industry and Energy.
Of the 260 billion won, the ministry will invest 170 billion won in developing technologies for creating eco-friendly vessels, 70 billion won in the digital transition of shipbuilding procedures and 20 billion won in developing autonomous vessels.
In detail, the ministry will focus on developing ships powered by clean energies, such as ammonia and electricity, as well as eco-friendly equipment like auxiliary devices for wind power.
In July, South Korea unveiled an initiative to secure advanced shipbuilding technologies by 2040, including full autopilot capabilities and carbon-free engines, for the sustainable growth of the industry.
Three major South Korean shipbuilders posted an operating profit in 2024 on the super cycle of the industry and sales of premium ships, according to industry data.
It marks the first time in 13 years that all three companies logged a yearly operating profit.
HD Korea Shipbuilding & Offshore Engineering Co. reported an operating profit of 1.43 trillion won in 2024, marking a 408 percent increase from a year earlier, the company said in a regulatory filing last week.
Hanwha Ocean Co. swung to an operating profit of 237.9 billion won and Samsung Heavy Industries Co. reported an operating profit of 502.7 billion won, up 115 percent from the previous year.