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Departmental Report 2022

Date. 2021-12-28
Hit. 391


「Changes Made in Conjunction with the People, by a Government that Fulfills its Responsibilities until the End」


- The Ministry of Oceans and Fisheries will deliver on its vision to turn Korea into a leading maritime nation of caliber and stature -

 

◈ Become a leading nation in the shipping sector by supporting the expansion of national shipping company fleets, and engaging in full-fledged development of smart ports
◈ Promote the activation of fishing communities, by rolling out the Post Fishing Village New Deal, boat rentals for youth, and residential platforms
◈ Achieve negative carbon emissions from marine and fisheries by expanding carbon absorption and reduction sources, including blue carbon and marine energy

 

< Policy Action Performance and Public Responses over the Past 4.5 Years >


ㅇ Cosmetics start-up A previously exported its products to around 50 countries, including the US, UK, and Germany. However, from the second half of 2020, freight rates for American routes radically increased due to a shortage of shipping space, whereby additional contracts with overseas buyers were about to turn sour. Fortunately, thanks to the collaboration between the Ministry of Oceans and Fisheries and the Ministry of SMEs and Startups, national shipping firm HMM provided cargo space dedicated to small and medium-sized exporters, allowing start-up A to deliver the urgent shipment on time and to keep their commitment to the overseas buyers.

 

ㅇ In August 2021, university student B checked the ‘Beach Congestion Traffic Light’ on a portal site before visiting a beach in Gangwon-do famous for the filming of the album cover for BTS. With much of a crowd expected at the beach, student B and a group of friends made the trip to the breach. On site, color-changing stickers, that reacted to higher body temperatures indicative of a fever, were provided at the entrance and visitors were advised to sign in using a ‘safety call number’. Despite the COVID-19 pandemic, student B was able to enjoy the beach with their friends and felt rather relieved.

 

< Public Responses to the 2022 Departmental Plan >


ㅇ While previously interested in the fishing business, youth C was unable to act on their dream of relocating to a fishing village, burdened by pricy fishing boats and initial settlement costs. Then, after finding out that the ‘Youth Fishing Boat Rental Project,’ the government program that leased out fishing boats to youth at low cost, was to start in 2022, C was able to take part in the project. After completing the two-week training course, C is now able to engage in coastal trap fishing. Also, through the Home of the Returning Fishers program, which provides a temporary residence for a minimum period of 1 year, C is now able to achieve their dream of becoming a fisherman.

 

ㅇ While already engaged in the aquaculture business, D was not at ease after coming across the news that Styrofoam buoys had adverse impacts on the marine ecosystem. Then, learning about the government project that supported the purchase of eco-friendly buoys at the price of existing Styrofoam buoys, D decided to replace the existing ones. With many companies producing various multi-functional and eco-friendly buoys, there was a wide selection of buoys with little difference in performance compared with the Styrofoam counterparts.

 

□ On Dec 28 (Tues), the Ministry of Oceans and Fisheries (MOF; Minister MOON, Seong-Hyeok) announced that it has carried out a comprehensive performance review of the marine and fisheries policies during the last 4 and half years of President Moon’s administration (2017~2021) and established the ‘2022 Ministry of Oceans and Fisheries Work Plan’ to promote the core initiatives of 2022.

 

Ⅰ. Performance Highlights over the Last 4.5 Years

 

󰊱 Delivering tangible results from the ‘Five Year Plan to Rebuild the Shipping Industry (April 2018)’.

 

ㅇ The implementation of the plan to rebuild the shipping industry allowed Korea to establish the foundation for the nation to rebuild its competitiveness in the shipping sector after its collapse following the bankruptcy of Hanjin Shipping and to become a leading nation in the shipping sector within the global community.

 

* (Post-Hanjin Crisis → 2021 (estimated)) Shipping revenues (Unit: KRW trillion) 29 → 40, Container shipping capacity (Unit: TEU) 460,000 → 1.05 million
** (Strategy to Become a Global Leader in Shipping, June 2021) Develop and complement the five-year plan to rebuild shipping (including cargo volume expansion), and introduce eco-friendly and smart technologies

 

ㅇ Moreover, the injection of temporary additional vessels (Aug 2020 ~) and operation of cargo space designated exclusively for SMEs (1,300TEU/shipment) have supported the growth of exports of Korean companies in the midst of the Global Shipping Crisis.

 

* Aug 2020 ~ Nov 2021 Performance: (temporary vessels) 86 ships provided, transporting 198,000 TEU / (SME-dedicated cargo space) 100 shipments supporting 15,000 TEU

 

󰊲 Pursued innovation in the fisheries industry and revived the livelihood of coastal and fishing villages.

 

ㅇ Fishery productivity and export competitiveness have improved with along with recovery of the ecosystem, with improved resource management based on Total Allowable Catch (TAC) and by developing eco-friendly and high value-added fisheries.

 

* (Fishery profit per ship (2017 → 2020)) (Unit: KRW million) 307→380, (Unit: KRW million) 34 → 48
(Fishing household income) 2017: KRW 49 million → 2020: KRW 53 million / (Fishery exports) 2017: USD 2.33 billion → 2019: USD 2.51 billion → 2021: USD 2.7 billion (estimate)

 

ㅇ Contributed to reviving the fishing and coastal economy by promoting the Fishing Village New Deal 300 (2019 ~), implementing the direct subsidy payment program for providers of public benefits (2021 ~), and by activating marine tourism and port reconstruction.

 

󰊳 Prepared the foundation for the sustainable management of marine environments and spaces.

 

ㅇ Rolled out efforts to reduce marine plastics, such as through the supply of eco-friendly buoys (supplied 21.30 million, cumulative) and established the master plan on marine waste (May 2021), as well as the foundation for the transition of the oceans and fisheries to carbon neutrality by 2050.

 

ㅇ Established the Plan First and Use Later framework for Marine Space, such as the legislation regarding the Act on Marine Spatial Planning and Management (2018), and the foundation for expanding artic activities, including the decision to construct next-generation icebreaker research vessels (2021).

 

󰊴 Advanced the management of marine safety and contributed to overcoming COVID-19 in the marine and fisheries sector.

 

ㅇ Reduced marine accident casualties by 48% (last 4 years vs 2014 to 2017) with enhanced safety management, including the launch of the Korea Maritime Transportation Safety Authority (July 2019), and prepared the groundwork for digital marine safety management, including e-Navi.

 

ㅇ Minimized the impact of COVID-19 on the marine and fisheries industry with quarantine management and business support (KRW 3.8 trillion), and built the foundation for the digitalization and transformation to green marine and fisheries in the post-pandemic era.

 

Ⅱ. 2022 Ministry of Oceans and Fisheries Key Initiative Strategy

 

[1] Become a World Leader in Shipping

 

󰊱 Secure a competitive edge in the shipping sector to lead the world.

 

ㅇ Support the timely design and construction of the twelve 13,000 TEU class vessel orders received in 2021 to grow the national shipping company HMM to become a global leader company in shipping

 

* Already operate 20 (twelve 24,000 TEU class vessels and eight 16,000 TEU class vessels) super-sized container ships (2020 ~ 2021)

 

ㅇ Moreover, the Ministry plans to invest in the operational assets of the ‘K-Alliance,’ a cooperative among the national shipping firms on the Southeast Asian routes, support the expansion of collaborative routes, and prepare a ‘plan to secure stability in the shipping market’ to firm up a joint action management system in consideration of the characteristics of the shipping sector.

 

ㅇ The Ministry will promote commercialization activities to take the lead in the autonomous ship market (KRW 180 trillion through 2025) by developing the core technologies for autonomous vessels, constructing small pilot vessels, and performing real sea demonstrations, while developing smart port connection systems, including an entry/exit control system (~ 2025).

 

󰊲 Pre-emptively develop and secure future port infrastructure and streamline operations.

 

ㅇ Develop automatic unloading and transport technology* and build a testbed for automation of the Gwangyanghang Port (2022 ~ 2026) to verify and commercialize smart port technology, and fully engage in the development of the state-of-the-art Busan-Jinhae New Port.

 

* Inclusive of a container automatic unloading system (2019 ~ 2023) and an autonomous collaborative operation-based cargo transport system (2022 ~ 2024)

 

ㅇ Moreover, the Ministry will supply new port locations equivalent to 11x the land area of Yeouido (33km2) by 2030 to attract outstanding businesses specialized in each region*, and open overseas joint logistics centers in the ports of Rotterdam (Jan 2022), Barcelona, and Probolinggo (H1, 2022).

 

* Incheon Port (cold chain, e-commerce, to be designated in 2022), Busan New Port (integrated logistics), Mokpo Port (automobiles, steel)

 

󰊳 Supporting imports and exports logistics to grow in conjunction with related industries.

 

ㅇ Actively provide support to resolve the logistics challenges of exporters by continuously assigning temporary vessels on major routes (4+ vessels per month) and to allocating cargo space dedicated to SME operators (900 TEU or more per shipment), and by expanding the export cargo warehouses in Busan Port (from 9,550 → 12,050 TEU by Feb 2022).

 

ㅇ Support timely marine transport and port unloading to ensure seamless movement of strategic materials, including urea solution, increase the size of the national essential fleet in preparation for emergencies, and conduct reviews to improve the public bidding and contracting framework for the transport of strategic materials.

 

[2] Proactively respond to diminishing fishing villages and activate the coastal economy.

 

󰊱 Accelerate the vitalization of fishing communities.

 

ㅇ Develop at full scale 50 new recipient locations for the Fishing Village New Deal 300, launch pilot programs (6 locations) for the Post-Fishing Village New Deal that links residences with occupations, and prepare a strategy to promote the Post-Fishing Village New Deal for SOC hubs that connect income, settlement, and living conditions.

 

ㅇ Together with Boat Rentals for Youth program (2022, 10 ships), implement the Public Rental Aquaculture and Village Licensing program for relocating fishers to provide jobs, and alleviate the residential burden of the returning fishers with short and long-term residential support (Homes for Returning Fishers, Remodeling of vacant houses in fishing villages, and a residential platform).

 

ㅇ Also, accelerate private investment to increase incomes of the fishing communities and revitalize the coastal economy, including expanding the scope for direct subsidy payment programs for providers of public benefits* and building specialized fishing village experience and recreation villages (2022, 2 locations for ‘marine healing’), and allowing commercial facilities and private developments on national port premises.

 

* Direct subsidy payments for less favored regions: fishermen on islands and in border regions → to include continental islands, and fishing boat crews / review basic and optional direct subsidy payments (~ 2023)

 

󰊲 Support the sustainable innovation and growth of the fishery industry.

 

ㅇ Consider the expansion of online and fresh product distributions to build additional infrastructure, including marine product clusters (~ 2025, Busan, Jeonnam) and wholesale market fulfillment centers (2022, 2 locations) and accelerate consumption and exports with mutually beneficial seafood discounts (KRW 20 billion) and expansion of online K-Seafood venues (5→7).

 

ㅇ Improve policy acceptability by increasing the subsidies* for production restrictions, such as TAC, reduction on the number of vessels, and fishing free periods, for coastal and inshore fishing and through analysis of policy performance, and promote the transformation to eco-friendly aquafarming by building smart aquafarm clusters (~ 2024, 5 locations) and increasing the supply of eco-friendly feed.

 

* TAC business stability support fund: KRW 10.5 → 12.0 billion / Subsidy for business closures due to reduction in ship numbers (vs average annual income): 90 → 100%

 

󰊳 Enhance the foundation for marine tourism and promote reconstruction of ports.

 

ㅇ Timely completion of key tourism hubs, including Marine Healing Centers (4 locations), Marine Leisure Tourism Hubs (5 locations), and the Marina Infrastructure (8 locations), to prepare for the increase in post-COVID19 demand expected in marine tourism, and perform a feasibility review on the construction of the Garorim Bay Marine Garden.

 

ㅇ For Busan North Port, ensure the timely opening of stage 1 water-friendly facilities and perform a stage 2 pre-feasibility review. For Incheon Port, complete the construction of the Yeogjongdo Comprehensive Tourism and Leisure Complex site within the year and accelerate the reconstruction of port 1‧8 to enhance citizens’ convenience.

 

[3] Realizing marine and fisheries free from carbon emissions and disasters

 

󰊱 Pursuit of negative carbon emissions in the marine and fisheries sector.

 

ㅇ Reduce the annual greenhouse gas emissions of 4.061 million tons (Shipping: 1.02 million tons / fisheries: 3.04 million tons, as of 2018) in the marine and fisheries sector by more than 89% (3.639 million tons) by 2050, with an additional reduction of 3.659 million tons, totaling a reduction of 7.298 million tons.

 

- 528 shipping boats*, including 58 public vessels, are to be converted to low-carbon vessels (LNG, hybrid vessels) by 2030. Old ships for fisheries shall have their engines replaced or be prioritized for substitution through the building of replacement ships. Eco-friendly facilities are to be supplied to aquafarm and processing plants.

 

ㅇ Expand sources of blue carbon, including tidal flats and ocean forests, by 2050, and commercialize the use of marine energy sources, such as tidal or wave power, to additionally reduce carbon emissions in the marine and fisheries sector.

 

- Promote the restoration of 30km2 tidal flats (500,000 tons) and building of 54,000 ha ocean forest (180,000 tons) and develop new carbon absorption calculation methods to add to the sources of new national carbon sinks.

 

- Moreover, develop tidal power generation facilities and perform onsite validation, run pilot operations for wave power generation (Jeju, 30KW), and review the feasibility of expanding the tidal power generation facility capacity at Sihwaho Lake.

 

󰊲 Aim for zero marine plastic waste.

 

ㅇ Complete the conversion to eco-friendly buoys by 2024 (2022, supply 11 million units), and increase the number of port/dock drop-off points (76→106 locations) to implement the policies on Real Name Registered Fishing Gear, and Key Deposits for Fishing Gear and Buoys (2023).

 

ㅇ Operate 6 island waste purification and transportation boats, and increase the number of marine environment protection workers (1,000 → 1,200) and drive the development of eco-friendly One-Stop waste treatment ships (2022 ~ 2026).

 

ㅇ To realize zero marine plastic waste by 2050, increase the number of privately-managed companion beaches (4 → 7 regional governing bodies), improve the efficiency of the cross-ministerial Marine Waste Management Committee, and enhance domestic and international cooperation, such as by opening the International Marine Waste Conference (Sep 2022, Busan)

 

󰊳 Build a trustworthy safety management system for the marine and fisheries sector.

 

ㅇ Following the enactment of the Special Act on Port Safety (Aug 2022), a safety management plan is to be established for 372 unloading sites within nationally managed trading ports, with placement of port safety inspection officers (39).

 

ㅇ Consolidate* safety and health management for fishing crew, and increase the supply of location transmitters for high sea fishing boats (current: 802 boats → ~ 2023: 2,100 boats) to improve the management of operational safety.

 

* Occupational Safety and Health Act → Fishing Vessels Act (safety standards for fishing boat facilities), Safe Fishing Vessel Operations Act (ensuring crew safety)

 

ㅇ Actively respond to Japan’s decision to release radioactive waste water through pan-governmental action, and reinforce the management of marine and fisheries business sites (42,000 locations) following the enactment of Serious Accident Punishment Act (Jan 2022).

 

Minister MOON, Seong-Hyeok of Oceans and Fisheries reiterated the commitment of the Ministry by saying, “As 2022 is the last year of President Moon’s administration, (the Ministry) will continue to do its best to actively support the nation to overcome the pandemic and revive its economy, realize carbon neutrality and transform marine and fisheries into an eco-friendly sector, and to build on this foundation to increase the vitality of the fishing communities.”