Busan: Industry Minister Kim Jung-kwan on Wednesday vowed active support for the growth of small and medium-sized shipbuilders and shipbuilding equipment manufacturers. Kim made the pledge in a meeting with executives from the companies in the southeastern port city of Busan, saying the government will invest 500 billion won (US$332.5 million) for the artificial intelligence (AI) transformation of the shipbuilding sector.

According to Yonhap News Agency, the government will also work to develop U.S. investment projects that South Korean shipbuilding equipment manufacturers and small-sized shipbuilders can participate in under the MASGA initiative. MASGA refers to the "Make American Shipbuilding Great Again" proposal, one of the major projects that helped South Korea secure its tariff agreement with the United States last year.

In addition, the government will encourage Korean firms' overseas expansion into countries like India, Vietnam, and the Philippines, where demand for shipbuilding equipment has recently been increasing. The government plans to expand refund guarantees for small and medium-sized shipbuilders for their overseas business, Kim added.

"Shipbuilding equipment companies and small and medium-sized shipbuilders are the foundation of the K-shipbuilding supply chain, and furthermore, a core industry for our maritime security," the minister said.