South Korea is the world’s leading shipbuilder, with over 50% of its domestic shipbuilding revenue coming from LNG carriers. However, the core technology for the cryogenic cargo holds (tanks) is monopolized by GTT, forcing Korean shipbuilders to pay a royalty of approximately $10-20 billion won ($7.2-$14.4 million USD) per ship. This financial outflow and technological dependence are what the government and domestic shipbuilders, like HD Hyundai and Samsung Heavy Industries, are seeking to address. The technology is also crucial for future vessels that will carry liquefied hydrogen and ammonia.
Supporting Korea’s Strategic Technologies
The government’s plan includes a phased approach to support the localization of LNG cargo hold technology:
- Phase 1 (H2 2025): Support for the development of automated production processes for insulating panels.
- Phase 2 (2026 onwards): Large-scale financial support for the advancement of materials and components for the cargo holds.
The government’s new growth strategy also includes support for other key technologies:
- Silicon Carbide (SiC) Power Semiconductors: Aiming to raise the self-sufficiency rate to 20% by 2030, with support for R&D and specialized talent training at eight universities.
- Superconductors: Developing materials that eliminate electrical resistance for applications in medical, bio, and nuclear fusion fields.
- Next-Generation Materials: Supporting the development of graphene and special carbon steel.
- Renewable Energy: Improving the efficiency of next-generation solar and offshore wind power.
Other Key Sectors to Receive Support
In addition to advanced materials and shipbuilding, the government will support other key industries:
- K-Content: The goal is to more than double exports from $13.2 billion in 2022 to $25 billion by 2030 by promoting the expanded use of AI in content production.
- Smart Agriculture & Fisheries: Establishing a special committee and a fusion research group to encourage innovation and productivity through AI integration.
- Bio and Pharmaceutical: Utilizing AI for new drug development and providing large-scale funding to transition to a high-value-added industrial structure.
- K-Beauty: Selecting a “Beauty Cluster Target Region” and actively supporting the development of products with Halal certification for the Middle Eastern market.
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Source: Chosun Biz
