South Korea leads global newbuild orders, yet 92.5% of ship repairs go overseas

South Korea, known for its world-leading shipbuilding industry, is facing a critical challenge in its ship MRO (maintenance, repair, and overhaul) sector. A recent forum held at the National Assembly Library highlighted the urgent need to develop a ship repair cluster centered on Busan, as 92.5% of large South Korean-flagged vessels currently undergo repairs overseas.

Experts Call for Establishment of Ship Repair Cluster in Busan

The “Forum on Building a Maritime MRO and Ship Repair Cluster for the MASGA Era” emphasized the necessity of creating a ship repair hub in Busan to address the growing demand for maintenance services. With changing external conditions such as U.S.-South Korea shipbuilding cooperation, the opening of the Arctic Route, and stricter maritime decarbonization regulations, experts stressed the importance of expanding South Korea’s domestic MRO industry.

Government Unveils Roadmap for Ship Repair Complex in Busan

South Korea’s Ministry of Oceans and Fisheries unveiled plans to invest approximately 1.5 trillion won ($1.1 billion) in the southern area of Busan New Port to construct a ship repair complex capable of servicing icebreakers and large container ships. The roadmap aims to kickstart a business model study this year, followed by a private investment eligibility review in 2028, third-party proposal evaluation in 2029, and groundbreaking in 2030. The ministry has also issued a research service tender to secure the public-interest aspects of the Busan New Port ship repair complex.

Experts at the forum proposed treating the ship repair complex as national strategic infrastructure rather than purely profit-driven. They highlighted the need for government support in upgrading and certifying existing repair yards, as large shipyards are currently overwhelmed with newbuild projects, while smaller yards lack the necessary facilities to expand MRO operations.

In conclusion, stakeholders in South Korea’s maritime industry are optimistic about the potential for growth in the ship maintenance and repair sector. By addressing key prerequisites such as timely parts procurement, infrastructure development, and skilled manpower, the country can leverage its world-class shipbuilding expertise to establish a competitive edge in the MRO industry.