Korean Shipbuilding Industry to Implement AI Solutions Amid Labor Shortages

South Korea's shipbuilding industry, despite a surge in orders, is grappling with chronic labor shortages. In response, the government plans to establish an artificial intelligence (AI)-based production innovation hub in the Daebul Industrial Complex in Yeongam, South Jeolla Province. This initiative aims to create a testing center where small and medium-sized shipbuilding equipment companies can experiment with AI and automation technologies to enhance productivity and improve working conditions.

On June 9, the Daebul Free Trade Zone Management Office held a meeting with relevant agencies and a briefing for prospective tenants regarding the establishment of the 'Shipbuilding Industry AX Demonstration Center' at its office in Yeongam.

The Shipbuilding Industry AX Demonstration Center is part of the Ministry of Trade, Industry and Energy's initiative to support the 'Innovation of Shipbuilding and Marine Production Processes (AX)'. Mokpo National University will serve as the lead organization, constructing demonstration and research facilities within the Daebul Free Trade Zone to establish a technology validation and corporate support system in production processes.

The Daebul Industrial Complex is a prominent shipbuilding cluster in South Korea, centered around HD Hyundai Samho, with hundreds of shipbuilding equipment companies located there. Although production volumes have increased due to a recent boom in the shipbuilding sector, many companies are struggling to secure on-site labor. This situation has heightened the need for the adoption of AI and automation technologies to improve productivity and working conditions.

During the meeting, representatives from HD Hyundai Samho, Mokpo National University, the Jeonnam Daebul Industry-Academic Cooperation Foundation, and Jeollanam-do shared updates on the project's progress and discussed future operational directions and collaboration strategies.

Participants agreed to strengthen their cooperative framework to ensure the demonstration center becomes a key hub for the digital transformation of the local shipbuilding industry and to continuously develop support measures to enhance the utilization of local businesses.

In a subsequent briefing for prospective tenants, the current status of the project, plans for the center's construction, and future support programs were introduced. Attending companies expressed optimism about the demonstration center's potential to address productivity challenges, labor shortages, and improve working conditions, requesting ongoing communication and information sharing to ensure their needs are adequately reflected in the operational process.

An Chang-hyung, head of the Daebul Free Trade Zone Management Office, stated, "We will strengthen cooperation with relevant agencies to ensure that the Shipbuilding Industry AX Demonstration Center becomes a core hub for the digital transformation of the local shipbuilding industry, and we will actively support the project to ensure that tenant companies can experience tangible results."