International Competition Reinforcement in Shipping and Port Logistics

International Competition Reinforcement in Shipping and Port Logistics

Building the Foundation for Shipping Industry Reform by Expanding National Fleet and Improving Management Conditions of Shipping Company.

  • Establishing Korea Ocean Business Corporation (Jan. 2017) to support improvement of financing condition in shipping companies; and promoting a stake purchasing project targeting foreign ports by updating global ocean funds system.
  • Supporting shipbuilding order and expansion of national fleet by largely increasing the target of KAMCO Fund and vessel funds.
  • Securing market order by opening management information and false data report system (2nd half of 2017).

Creating Environment of Shared Prosperity between Shipowners and Consignors for Stable Demand of Freight

  • Creating the foundation for shared prosperity between shipowners and consignors including rearranging container shipping charges and improving services based on the Council for Strengthening Competitiveness co-hosted by KITA and KSA.
  • Expanding long-term contract for shipping to encourage use of national fleet for large cargo; and securing stable shipping by strengthening the criteria for bidding for nationally strategic products like coal.

Improving Working Conditions of Seafarers & Nurturing the Human Resources

  • Promoting Charm seafarer project including introduction of retirement pension and expanding telemedicine in ocean business.
  • Securing the foundation for nurturing potential seafarers by increasing entrance quota of relevant department in Korea Maritime & Ocean University; and expanding education infrastructure by building total emergency training center (2017).

Expanding Transshipment Cargo Attraction & Enhancing Efficiency of Port and Shipping Services

  • Expanding port incentive to attract more transshipment cargo; and improving public-private marketing (from Feb. 2017) and transshipment process.
  • Setting up strategy to promote mega-port for Busan Port to strengthen transshipment hub functions (Dec. 2017); enlarging transshipment volumes of vehicles at Kwangyang Port; and Competing earlier dredge the water-depth of Incheon New Port (May, 2017).
  • Arranging a measure of updating port operation system (2nd half of 2017) and a plan to promote Korean-style Global Terminal Operators (GTO; Nov. 2017) to respond to outer environment for port operation mainly targeting supply.

Strengthening Functions of Core Industry by Regional Port.

  • Planning to develop marine industrial cluster in temporarily selected regions including Busan Port and attract investment to designate as the 1st cluster (Oct. 2017) under Special Act on Designation & Promotion of Marine Industrial Cluster (enforced from Nov. 2016).
  • Intensively promoting Kwangyang Port as the greatest port industrial cluster having motor and energy industries and Busan Newport as ship repair complex accommodating large ships (over 30,000 tons).

Implementing Port Renewal Project Connecting Town & Expanding Private Capital Inducement for Port Hinterland Development

  • Making public-private investment worth KRW 370 millions in a port renewal project in 2017 including full-blown construction in 6 major ports (Busan, Kwangyang and others).
    • Beginning to build a complex worth KRW 1 trillion in Busan North Port, while building the sites in Kwangyang Myo-do and Incheon Yeongjong-do.
  • Allowing private bodies to join to develop type-1 port hinterland focusing on distribution & manufacture; and attracting investment including selection of business for Pyeongtaek & Dangjin Port (Mar. 2017) and inviting the public to join in other development projects (Jun. 2017).