South Korea’s Ministry of Oceans and Fisheries announced its plans for allocating funds for the construction and retrofit of 81 ships, including those powered by LNG and electricity.
The South Korean government, local authorities, and public institutions plan to invest approximately KRW 222.3 billion (KRW 163.5 billion from the national budget and KRW 58.8 billion from local governments’ budgets) to support the construction or conversion of 81 environment-friendly ships.
- The public sector plans to build 34 environmentally friendly vessels, including electric-powered or hybrid ships, to help reduce greenhouse gas emissions. Additionally, 15 existing ships will be equipped with diesel particulate filters (DPF) to cut fine dust emissions.
- In the private sector, support will be provided for the construction of 20 ships in response to the growing demand for eco-friendly vessels. Financial assistance, including secondary financing, will also continue for 12 vessels to install environment-friendly equipment.
In December 2018, the government enacted the Act on the Promotion of Development and Distribution of Environment-Friendly Ships.
This required the public sector to build environmentally friendly ships and providing the private sector with a legal framework to reduce acquisition taxes and offer subsidies for converting to eco-friendly vessels.
As a result, 199 ships were converted into environment-friendly ships as of last year.
We will make generous investments in small and medium-sized shipping companies to convert into environment-friendly ships, drastically reduce greenhouse gases in the shipping industry, and proactively respond to strengthening international decarbonization regulations.
…said Kang Do-hyung, Minister of Oceans and Fisheries.
