South Korea to Invest $1.04 Billion in AI Shipbuilding Initiatives

By Yujin Kim Posted : October 12, 2026, 13:04 Updated : October 12, 2026, 13:04

The South Korean government plans to invest 1.4 trillion won (approximately $1.04 billion) over five years to transition the shipbuilding industry to artificial intelligence (AI). The initiative will focus on automating the design and assembly processes at shipyards in Mokpo, Yeongam, Geoje, Busan, and Gunsan, while also spreading related technologies to small and medium-sized shipbuilders and equipment manufacturers.


On October 12, the Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries held a 'Shipbuilding M.AX Alliance Strategy Meeting' in Mokpo. During the meeting, they announced the reorganization of the existing 'Autonomous Ship M.AX Alliance' into the 'Shipbuilding M.AX Alliance' and outlined plans for three flagship projects worth 1.4 trillion won over the next five years, centered around large shipyards, small shipbuilders, and equipment manufacturers.


The first project will establish a lighthouse factory in Mokpo and Yeongam, applying M.AX technology to medium and large assembly processes with a total investment of 596 billion won. This initiative will also extend technology to nine nearby partner companies.


Anchor company HD Hyundai Samho will lead the development of AX technology, while HD Korea Shipbuilding & Offshore Engineering will create an autonomous logistics and operations system to support process integration. Local partner Daehan Industry will collaborate with HD Hyundai Samho to develop AX technology for block assembly, and eight other partners, including Yuil and Taijin, will actively adopt the AX technology validated through HD Hyundai Samho and Daehan Industry's demonstration facilities.


The government will support the anchor company's AX technology development with 160 billion won for research and development (R&D). Additionally, when the anchor company transfers AX technology to partner companies, it will provide 36 billion won for equipment distribution to facilitate on-site AX technology application.


The strategy for the Geoje and Busan regions also includes the introduction of an AI-based design and collaboration platform for producing outfitting components, supported by 500 billion won in public-private investment.


Anchor companies Samsung Heavy Industries and Hanwha Ocean in Geoje will transition their drawing systems to AX and implement a platform for sharing design and production information with equipment manufacturers. In Busan, where 60% of the nation's equipment manufacturers are concentrated, participating companies will adopt the design-production information sharing platform and invest in automating the equipment necessary for outfitting component production.


The government will allocate 100 billion won to support the establishment of design-production collaboration platforms for anchor companies and equipment manufacturers, as well as the distribution of on-site AX equipment.


Finally, in Gunsan, 310 billion won will be invested to develop AX technology for small assembly processes and disseminate it to nearby small businesses. Anchor company J Ocean Heavy Industries will expand its factory to install AX demonstration facilities for small assembly production and provide infrastructure for a dedicated 5G network.


The Ministry of Trade and the Ministry of Oceans and Fisheries will invest 110 billion won to support the development of AX technology by anchor companies, the establishment of dedicated 5G network infrastructure at shipyards, and the adoption of AX technology by local small businesses.


During the event, a memorandum of understanding was signed involving HD Hyundai Samho, Jeonnam Gwangju Integrated Special City, and others related to the Mokpo and Yeongam M.AX flagship project.


HD Hyundai Samho and Daehan Industry will invest a total of 400 billion won to build an AI autonomous shipyard lighthouse factory in the Daebul Free Trade Zone in Yeongam and share the results with local shipbuilding companies.


Additionally, the Ministry of Oceans and Fisheries and the Ministry of Trade unveiled the 'First Basic Plan for the Development and Commercialization of Autonomous Ships (2026-2035)' established under the 'Autonomous Ship Act.' The global autonomous ship market is projected to reach approximately $224.5 billion by 2035.


The two ministries aim to comprehensively support autonomous ships, targeting the commencement of operations for International Maritime Organization (IMO) Level 4 fully autonomous ships and becoming the top contractor for fully autonomous ships by 2035.


Under this basic plan, they will collaborate on five strategies: developing core technologies, expanding real-world demonstrations, establishing a safety operation foundation, training personnel, and leading international standards.


Kim Jeong-kwan, Minister of Trade, emphasized the need for the entire K-shipbuilding sector, including small shipbuilders and equipment manufacturers, to unite their capabilities around the 'Shipbuilding M.AX Alliance' to grow together. He added, 'We will quickly advance the three flagship projects of Shipbuilding M.AX to create success stories for small shipbuilders and equipment manufacturers and spread them throughout the shipbuilding ecosystem.'


Hwang Jong-woo, Minister of Oceans and Fisheries, stated, 'Autonomous ships are a new growth engine that will transform the paradigm of the shipping and shipbuilding industries. We will implement the First Basic Plan for Autonomous Ships without delay and lead the global autonomous ship market. We will also strengthen inter-ministerial cooperation to ensure the spread of M.AX throughout the shipbuilding and shipping industries.'





* This article has been translated by AI.

Copyright ⓒ Aju Press All rights reserved.