President Lee orders review of fiscal support for shortage of refund guarantees for small and mid-sized shipbuilders

President Lee Jae Myung visited Ulsan Metropolitan City on the 13th to discuss ways to develop the shipbuilding industry, one of the country's key future growth engines. He stressed, "For the domestic shipbuilding industry to truly develop and for a strong ecosystem to be built, it is important to create a system in which the benefits of growth are shared evenly and both management and workers within companies can enjoy those gains together." He added, "Shipbuilding is a very important industry, but because it is exposed to risks from economic fluctuations, the government's role and efforts seem crucial."
At the K Shipbuilding Future Vision Roundtable held in Ulsan Metropolitan City that day, Lee said, "I don't think this can be solved simply by leaving it entirely to the field to handle on its own, so the government must also pay close attention to job retention and to maintaining and developing the shipbuilding ecosystem."
The roundtable was organized to discuss K shipbuilding's future strategy and was chaired directly by the president. South Korea's shipbuilding industry has recently seen more orders for high value-added vessels, and expectations are rising for expanded cooperation with major countries, including the United States. However, a fragile ecosystem for small and mid-sized shipbuilders and equipment suppliers, along with a shortage of skilled workers, remain key challenges.
Lee said, "The shipbuilding industry of the Republic of Korea has become a major industry that represents the country." He added, "When I recently met the heads of state of other countries, I found that almost all nations with access to the sea were hoping for cooperation from the Republic of Korea in shipbuilding."
He continued, "This is not anyone's fault. It seems to be a characteristic of the industry." He said related companies, subcontractors, suppliers, and equipment vendors are all exposed to large economic swings, making it difficult for everyone, and emphasized the importance of government support and a stronger public role.
At the meeting, Lee also ordered a review of measures after concerns were raised that small and mid-sized shipbuilders are facing difficulties because of a shortage of advance payment refund guarantees (RG). He also urged the building of a strong self-sustaining ecosystem as the top priority.
Lee said, "Today, international competition is no longer about a single product. In the end, it seems to be competition between ecosystems." He added, "How strong is your own ecosystem? If that ecosystem is well built, you gain international competitiveness. If you focus only on products or on a specific company, it becomes hard to endure difficult conditions."
cjk@fnnews.com Choi Jong-geun Reporter