Korea to invest W1.4tr in AI transformation of shipbuilding by 2030

The government and the shipbuilding industry will jointly invest 1.4 trillion won ($1.05 billion) by 2030 to accelerate the AI transformation of shipbuilding manufacturing processes, aiming to close the technology gap between large and small companies and drive innovation across production lines.

The Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries announced Monday at Hotel Hyundai Bailahan in Mokpo that they would restructure the existing "Autonomous Vessel M.AX Alliance" into a broader "Shipbuilding M.AX Alliance," unveiled at a strategic meeting of the new body.

The event drew about 200 participants from more than 100 organizations, including Industry Minister Kim Jung-kwan, South Jeolla Province-Gwangju Special Metropolitan City Mayor Min Hyeong-bae, Yeongam-gun County Chief Woo Seung-hee, and representatives from shipbuilders, shipping companies, equipment suppliers, universities and research institutions.

The restructuring reflects a judgment that focusing solely on vessel intelligence is insufficient to secure the industry's sustainable growth, as competing nations intensify their market encroachment and labor shortages deepen.

Large shipbuilders have already begun AI transformation in some areas — such as drone-based process monitoring — but small and medium-sized shipyards and equipment suppliers still rely heavily on manual operations, leaving a significant gap between large and smaller firms.

To spread manufacturing AI transformation across regional industrial complexes, anchor companies and their supplier ecosystems, the government is launching three flagship projects under the Shipbuilding M.AX initiative.

Under the model, anchor companies and leading suppliers will form joint teams to develop and validate technologies, then roll them out to smaller partner firms.

In the Mokpo-Yeongam area, 596 billion won in public and private funding will go toward establishing an AI shipyard lighthouse factory and overhauling mid- and large-block assembly processes.

HD Hyundai Samho and Daea Industries signed an MOU Monday to build a 400 billion won AI autonomous-operation shipyard lighthouse factory in the Yeongam Daebul Free Trade Zone.

In Geoje and Busan, 500 billion won will fund outfitting process innovation. Samsung Heavy Industries and Hanwha Ocean will convert their blueprint design systems to AI-driven workflows and share standardized design data with Busan-area equipment suppliers to support the adoption of automated facilities.

In Gunsan, 310 billion won will be invested to develop AI transformation technology for small-assembly processes and extend it to nearby small and medium-sized firms. Anchor company J.Ocean Heavy Industries will expand its factory to deploy demonstration equipment and provide a site for a private 5G network infrastructure installation.

The two ministries also unveiled the first master plan for autonomous vessels.

The plan targets the launch of commercially operating IMO Level 4 fully autonomous vessels and the top global order share for such ships by 2035, to be pursued through five strategic tasks covering technology development, demonstration and workforce training.

"AI transformation of shipbuilding, an industry long dependent on manual labor, is a more daunting challenge than in almost any other sector," Industry Minister Kim said. "We will rally capabilities through the Shipbuilding M.AX Alliance, push the three flagship projects forward quickly, create success stories for small and medium-sized shipbuilders and equipment suppliers, and spread those gains across the entire shipbuilding ecosystem."

Oceans and Fisheries Minister Hwang Jong-woo said autonomous vessels represent a new growth engine that will transform the paradigm of the shipping and shipbuilding industries, pledging to implement the first autonomous vessel master plan without delay. He added that his ministry would actively participate in the Shipbuilding M.AX Alliance and strengthen inter-ministerial cooperation to ensure AI transformation spreads throughout both industries.