Seoul: The government will allocate 320 billion won (US$221.4 million) this year to support projects focused on developing cutting-edge shipbuilding technologies, aiming to bolster South Korea's shipbuilding industry's global leadership, the industry ministry announced Tuesday.

According to Yonhap News Agency, this year's budget marks a 23 percent increase from 2025, as reported by the Ministry of Trade, Industry and Resources.

The ministry emphasized its focus on supporting projects that develop eco-friendly vessels, AI-equipped ships and shipyards, and enhance the competitiveness of small and medium-sized shipbuilders. Specific projects eligible for state support include those developing carbon-free fuel propulsion technologies, such as ammonia turbines and hydrogen engines, as well as carbon dioxide capture and storage systems. Additionally, AI-powered smart shipyards, technologies and equipment for building icebreakers, and electric propulsion systems for offshore wind support vessels are included.

A ministry official noted that despite recent significant accomplishments in Korea's shipbuilding industry, challenges such as structural workforce issues, the concentration of orders in specific vessel types, and the relatively weak competitiveness of small and medium-sized shipbuilders need to be addressed. The official pledged efforts to help the sector gain a technological advantage over international competitors.

In 2025, Korea's ship exports reached a record high of $31.8 billion, with Korean shipbuilders securing 20.2 percent of all global orders, marking a 6.2 percentage point increase from the previous year. The country captured the largest share of orders for high-value ships, including liquefied natural gas carriers, according to the ministry.