-4.6 C
Hamburg
Thursday, February 13, 2025
Home Out of the Box South Korean president-elect wants to revive country’s maritime spirit

South Korean president-elect wants to revive country’s maritime spirit

South Korean president-elect Yoon Suk-yeol, who won narrowly at the polls on 9 March, wants the country to be a born-again maritime nation.

Yoon, previously a prosecutor, is from the conservative main opposition People Power Party whose ideology is aligned with former dictator Park Chung-hee, who is credited with transforming South Korea into an export-oriented economy. That process gave rise to the chaebols, or family-run conglomerates.

After the administration of outgoing president Moon Jae-in conceptualised a five-year plan in 2017 to revive the country’s struggling maritime industries, market watchers are wondering how the new government will continue these efforts. In 2017, Hanjin Shipping, the country’s largest shipping group, collapsed under a mountain of debt and the then second-largest container shipping company, HMM, was navigating its way through a financial crisis, as was major shipbuilders Daewoo Shipbuilding & Marine Engineering and STX Offshore & Shipbuilding (now renamed K Shipbuilding).

The aforementioned five-year plan included establishing Korea Ocean Business Corporation, a state-backed ship finance institution.

Based on Yoon’s campaign messages of developing autonomous navigation, smart ports and green ships, all projects started by the Moon administration, it appears that Yoon will not revamp the maritime policy.

South Korean shipping sources told Container News that Yoon is expected to spearhead efforts to find another white knight for DSME, after the European Commission nixed the shipbuilder’s proposed acquisition by Hyundai Heavy Industries in January.

State policy lender Korea Development Bank, which has already made it clear it will eventually divest its stake in HMM, also wants to release its grip on DSME.

In February, during campaigning in Geoje, Yoon addressed residents there, saying that if he was elected, he will prioritise the search for a white knight for DSME. The shipbuilding industry is a major employer in Geoje, which is home to Samsung Heavy Industries and is near DSME’s Okpo yard. Geoje residents are therefore, concerned of any fallout resulting from a potential collapse of Samsung HI or DSME.

Yoon said, “We’ll resolve the DSME takeover issue as soon as possible so that the shipbuilder can continue to contribute to the economic development of Geoje and South Korea.”

Martina Li
Asia Correspondent





Latest Posts

Drewry survey indicates optimism for Red Sea shipping

Amidst the recent developments concerning shipping activity through the Red Sea, a new industry survey conducted by maritime consultancy Drewry highlights cautious optimism within...

Cargotec announces new leadership team for Standalone Hiab

Cargotec’s Board of Directors has approved the appointment of a new leadership team, which will comprise the current Hiab Leadership Team members, effective from...

Cape Town Container Terminal to suspend operations amid severe weather

Operations at the Cape Town Container Terminal (CTCT) are expected to be suspended over the upcoming weekend (15-16 February) due to strong winds, as...

Hapag-Lloyd eyes Hanwha Ocean for newbuildings, confirmation pending

Hapag-Lloyd has reportedly signed a Letter of Intent (LoI) with South Korean shipbuilder Hanwha Ocean to construct six 16,800 TEU LNG dual-fuelled container ships,...

Uncertainty arises in global shipping after Trump’s statement on ceasefire deal

On 10 February, US President Donald Trump announced that he would consider scrapping the Israel-Hamas ceasefire agreement if the hostages in Gaza were not...
error: Content is protected !!