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Improving the Competitiveness of the Coastal Transportation Industry with Market-tailored Regulations

  • Date

    2023.08.25.

  • Hit

    617

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- Announcing 「Measures on Strengthening Coastal Transportation Safety and Fostering its Development」
- Plans to raise up to KRW 600 billion in private sector financing by 2030 

 

 

  The Ministry of Oceans and Fisheries established the ‘Measures on Strengthening Coastal Transportation Safety and Fostering its Development,’ which aims to drive the coastal transportation sector towards improved market productivity and efficiency with the support of the government through an influx of private investment. The measures were finalized on August 17th during the 28th Ministerial Meeting on Current National Initiatives chaired by the Prime Minister.

 

 

 Existing coastal transportation policies have focused on strengthening the public nature of transportation, including provision of improved transportation safety and welfare for passenger ships, a means of transportation used by 14 million people annually. The new set of measures will focus on shifting the status quo in the direction of a market-driven and public-supported coastal transportation system by leveraging the dynamism of the private sector, and thereby ① enhance the vitality of the coastal transportation market, ② enhance the safety and convenience of passenger services nationwide, and ③ support civil stability through strengthening the public nature of the sector.

 

 

 To summarize the key highlights, the government will first expand and reinvest in the Coastal Passenger Ship Modernization Fund, raising private-sector financing of up to KRW 600 billion by 2030 to revitalize the coastal transportation market. In addition, a publicly raised ‘National Passenger Ship Fund’ will be introduced, where ships will be procured with private capital and the public will operate them on long-term leases. This will help to reduce the burden on private participation while improving fiscal efficiency.

 

 

 Moreover, the government will dispel public concerns regarding passenger ship safety by reinforcing safety at passenger ship terminals and berths as well as by transparently disclosing safety information, while significantly improving convenience for users of passenger vessels by developing and operating an app that offers real-time passenger ship transportation information and offering connectivity with reservation services on popular platforms, such as Naver. The Ministry will also continue to provide support for initiatives to stabilize the lives of local residents, including the reduction of courier fees in island regions.