The government will create a 3 trillion won ($2.1 billion) fund to help South Korean construction firms win contracts abroad. It will also invest more than 1.4 trillion won in artificial intelligence for shipbuilding production lines through 2030, jointly with the private sector.
Lee Hyoung-il, deputy prime minister and minister of economy and finance, announced the plan on the 12th at a Ministerial Meeting on International Economic Affairs held at the Government Complex Seoul. "We will establish a 3 trillion won new strategy fund for overseas construction to support our companies in winning contracts," he said. The government also plans to expand package deals that combine development, construction and maintenance. It will use 1 trillion won in public funds as seed money to attract the remaining 2 trillion won from domestic and foreign investors.
The overhaul responds to a shift in the global infrastructure market toward higher-value investment and development projects. The government will move away from supporting individual projects and toward co-investment platforms organized by country and region. The aim is to broaden the role of Korean firms beyond construction work to include project development and maintenance.
The plan also seeks to channel overseas contract wins back into the domestic economy. The government wants to expand opportunities for small and mid-sized firms to supply equipment and take part in long-term maintenance, boosting regional economies and creating jobs.
Large sums will also go toward the AI transition in shipbuilding, reflecting the view that smaller yards remain far more dependent on manual work than major shipbuilders. The Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries held a strategy meeting for the Shipbuilding M.AX Alliance on the same day and unveiled a plan to invest a combined 1.406 trillion won across three hubs: Mokpo and Yeongam, Geoje and Busan, and Gunsan.
Mokpo and Yeongam will receive the largest share at 596 billion won. HD Hyundai Samho and Daea Industry will spend 400 billion won to build an AI shipyard lighthouse factory that automates the assembly and transport of mid-sized and large vessels. The government will provide 160 billion won for technology development and 36 billion won to help nine suppliers install equipment.
Geoje and Busan will see 500 billion won in investment. Samsung Heavy Industries and Hanwha Ocean will build a platform to share design and production data with equipment makers and will automate the production of components such as piping and electrical distribution systems. Drawing data for use in automated equipment will also be standardized. The government will contribute 100 billion won to the effort.
In Gunsan, 310 billion won will go toward automating the production of small blocks, including 110 billion won in public funds. Centered on J Ocean Heavy Industries, the project will build demonstration facilities and a dedicated 5G network, with the technology to be spread to smaller local firms.
Kim Jung-kwan, minister of trade, industry and energy, said the government will "move quickly on the three flagship projects to create success stories for smaller shipbuilders and equipment makers, then spread them across the shipbuilding ecosystem."