MOF’s Work Plan for 2023


【Highlights of the Departmental Report】

  • I. Enhancing the global competitive edge of Korea's international logistics sector

    Introducing "safety nets for shipping businesses" of up to KRW 3 trillion, to prepare against future economic downturns.

    • The government will introduce a “Crisis Response Fund“ of up to KRW 1 trillion to support the restructuring of national shipping firms, with KRW 250 billion channeled to small and medium-sized firms by drastically discounting the investment rate and guarantee fee rate while an Emergency Business Stabilization Fund (KRW 50 billion) is set up to provide timely support in times of crisis.
    • Furthermore, a ship rental business is to be implemented where the Korea Ocean Business Corporation will invest KRW 1.7 trillion to purchase the surplus vessels of shipping firms and lease them back to shipping firms in order to prevent shipping firms selling off their surplus ships overseas at cheap prices.

    Expand the shipping sector growth base to support Korea’s export-driven economy.

    • Increase the remote sea shipping capacity of national shipping firms from their current 1.05 million TEU to 1.10 million TEU by 2023 and 1.30 million TEU by 2027, to strengthen national shipping capacity.
    • Expand the eligibility criteria for the outstanding shipping firm certification program to include firms with non-regular vessels from the previous scope of regular liners to build on mutually cooperative relationships between shipping and cargo firms, and support the pilot program for long-term transportation agreements between shipping firms and cargo associations between the different sectors.

    Stimulate the market function of the shipping sector.

    • Relevant plans are to be drafted by H2 2023 to promote and facilitate private investment in Vessel Funds, which are primarily maintained by public investments.
    • Jointly initiate the consulting process with relevant institutions in the wake of the business normalization of HMM, including the feasibility review of the sale of business rights and analysis of potential candidates for acquisition.

    Build world-class smart mega-ports.

    • Start the full-fledged development of Busan New Port and Jinhae New Port as smart mega-ports to improve cargo processing speed by 35%, while reviewing infrastructure expansion plans, including connecting transportation networks and hinterland support complexes, to ensure the proper operations of Tri-ports once the Gadeokdo New Airport opens for business.
    • Incheon New Port and Gwangyang Port will also be transformed into fully automated ports by 2026.

    Private investment of KRW 1.4 trillion is to be attracted for the development of port hinterland support complexes, which are to be created as consolidated industrial spaces.

    • Port hinterland support complexes, equivalent to 10.8x the size of Yeouido, are to be developed and opened by 2030. Smart joint logistics centers are to be constructed at the ports of Busan and Incheon.
    • The consolidated regulations, such as those on sectors allowed to enter the hinterland complexes, are to be drastically revised, while incentives are to be offered for returning businesses, to attract global companies and returning firms.

    Secure the global logistics supply chain to improve competition in exports.

    • Secure additional terminals and joint logistics centers in the US and Southeast Asia, while providing support to Korean businesses to win tenders for marine and port projects in the Middle East, including Iraq and Saudi Arabia.
  • II. Developing the For-Export Blue Food Sector

    Build massive smart aquafarm clusters in six locations across Korea.

    • Establish test bed sites where companies, local universities, and young entrepreneurs can come together to develop and test technologies, backed by a concentrated number of related industries in logistics and processing.

    Implement a cold chain system for the supply of fresh and hygienic seafood products.

    • Maintain a low-temperature environment throughout the end-to-end distribution process in 100 old wholesale marketplaces by introducing eco-friendly and smart wholesale market operating systems that support hygienic processing.

    Develop processed food in consideration of consumption trends and relevant processing infrastructure.

    • Develop high value-added food products, including home meal replacements and room-temperature distributed food (fish cakes) as well as future food technologies, including alternative seafood and aquatic cultured meat, which continue to garner public interest backed by trends in value-based consumption.
    • Build large-scale seafood clusters (Mokpo, Busan) and a IoT-based consolidated smart processing complex (Saemangeum) and designate three locations as laver sector promotion areas by February 2023.

    Grow 100 blue food exporters that can deliver USD 10 million in exports.

    • Offer up to KRW 220 million Growth Ladder Vouchers to each domestic firm to support market surveys, brand development, and acquisition of international certifications, to help them grow into global exporters.
    • Expand the number of Overseas Joint Logistics Centers, currently operated in 23 nations to support Korean exporters, to 25 nations, and launch the “Seafood Export United Team,” consisting of the Fisheries Cooperative, Korea Fishery Trade Association, Korea Fisheries Association, and Korea Agro-Fisheries & Food Trade Corporation, led by the Ministry of Oceans and Fisheries, to help exporters resolve the difficulties related to overseas market entry.

    Strengthen focused and connected marketing to expand blue food exports.

    • Operate exclusive sales zones on famous international online malls and hold ‘K-Seafood Global Week’ during shopping festivals, such as Black Friday in the US and Single’s Day in China.
    • With the Korean Wave as the central theme, collaborate via joint projects with relevant Ministries to enhance connected marketing with other consumer goods, such as cosmetics, medicine, and fashion apparel.

    Improve international cooperation under the Official Development Assistance (ODA) program to export Korea’s smart and eco-friendly aquaculture technologies.

    • Leverage the success of the eco-friendly Shrimp Biofloc* aquaculture technology ODA program conducted in the Sahara desert of Algeria to expand the program to other deserts or tropical regions, including those in the Middle East.
    • An eco-friendly culture technology using microorganisms based on the concept of the microorganism population increasing as they feed on fish excreta, after which the fish once again feed on the increased microbes
    • Carry out smart eco-friendly aquaculture technology ODA programs customized for each recipient nation, including shellfish for Vietnam and Napoleon fish for Indonesia.
  • III. Securing a competitive edge in marine mobility

    Securing global super-gap technologies in marine mobility.

    • Invest approximately KRW 1.3 trillion in the development of marine mobility technologies, including autonomous vessels, eco-friendly vessels, ultra-precision satellite-based navigation, and digital maritime transportation networks, by 2032.

    Set international standards in digital eco-friendly technologies, materials, parts, and equipment.

    • As the commercialization of marine mobility technologies require their standardization by UN’s International Maritime Organization (IMO), Korea should enhance its technological cooperation with international organizations and ODA programs in developing nations to lead discussions in international standards.

    Increasing support for early commercialization of new marine mobility technologies and the development of relevant industries.

    • Facilitate commercialization with regulatory reform, such as by allowing pilot operations of new technology vessels and special exceptions related to their certification and approval and by reducing the time required for the certification process by 1 year with the simplification of the certification process for equipment facilities.
    • Support the vitality of the eco-friendly ship market by providing construction subsidies (10~30% of the ship value) and other financial benefits.
  • VI. Stimulate the marine leisure tourism industry to increase the vitality of the regional economy

    Creating marine leisure cities (the Cancun of Korea) and K-Marina routes.

    • Promote the creation of consolidated marine leisure tourism cities (the Cancun of Korea) equipped with diverse activities, sights, marine transportation, as well as food and drinks.
    • Build and expand large-scale marinas in key coastal locations to support marine leisure activities, and build sea stations on islands that function as service areas to create K-Marina routes.

    Developing marine tourism sectors for the mutual growth of businesses and local regions.

    • Build marina industry clusters in connection with marina business centers to promote the development of the yacht and boat manufacturing sector.
    • Diversify the content offerings of the marine leisure tourism sector by leveraging marine resources, such as marine ecology or healing, or by utilizing marine leisure culture, such as fishing.

    Building a marine leisure tourism hub of Northeast Asia.

    • Develop the Southern coast region into a marine leisure tourism belt and build upon Korea’s brand as a major Northeast Asia destination, as Korea plans to celebrate the reopening of its ports for cruise vessels in March 2023.
  • Ⅴ. Creating habitable islands and coastal regions

    Supporting transportation and essential life logistics services for residents of neglected islands.

    • Zeroing in on the number of remote islands (40) that do not operate passenger ship services and increasing support for routes that are on the verge of service termination to guarantee the basic right to transportation for island residents, who have been neglected to date by national policies.
    • Introducing a government subsidy of KRW 6.5 billion to reduce the ‘courier surcharge (average KRW 5,000 per delivery)’ previously paid by island residents to cover the transportation costs of courier vehicles.

    Implementing income safety nets for low-income residents in fishing villages.

    • A new direct subsidy program is to be introduced for small fishing households or fishermen, who have previously been excluded from the direct subsidy for providers of public benefits, where KRW 1.2 million is to be provided for each household per annum.
    • Readjust the subsidies for fishing village care activities and pensions and provide medical checks specialized for the female fishing population.

    Supplying infrastructure to improve vitality and ensure sustainable growth in fishing villages.

    • A total of KRW 3 trillion is to be investment over the next 5 years (2023~2027) to improve overall fishing village infrastructure for local economy (distribution, processing, and sales of seafood products, tourism), accomodation (remodeling of empty houses, healthcare services), and safety (breakwaters).
  • Ⅵ. Responding to climate change and creating disaster-safe coasts

    Introducing “K-Ocean Watch," a coastal disaster warning system.

    • With the goal to secure coastal disaster responses within the “golden time,“ the Ministry will initiate a preliminary feasibility study for the implementation of “K-Ocean Watch,“ an early warning system for coastal disasters that accurately monitors and predicts marine changes in real time. The implementation of “K-Ocean Watch" is expected to drastically reduce the prediction frequency from 3 hours to 30 minutes.

    Fully equip ports and coastal regions with disaster safety facilities.

    • A “National Safety Coast” pilot program (2 locations) will be initiated, where coastal safety facilities are to be improved with maintenance for vulnerable sites to ensure ports that are safe from once-in-a-century disasters, while securing disaster buffer zones in high-risk coasts that can be used as eco-friendly parks.

    Building a futuristic coastal disaster response system.

    • Build a “Coastal Big Data Platform” by 2024 to consolidate dispersed maritime data on coastal oceans and disasters through collaboration between the private and public sectors.
    • Develop coastal development technologies that are adaptive to climate change, such as the installation of breakwater structures based on oyster shells and use of tidal flat plants, with programs to test their effectiveness along he Western and Southern coasts.