Korea to back shipbuilding AI projects with 1.4 trillion won through 2030

South Korea's industry ministry said Monday it will pursue a 1.4 trillion won ($1.05 billion) program of three flagship projects through 2030 aimed at spreading artificial intelligence across shipyard production, part of an expanded public-private alliance that now reaches small and mid-sized builders and equipment suppliers.

The initiative restructures the existing autonomous-vessel M.AX Alliance into a shipbuilding alliance covering production processes, with the flagship projects concentrated in industrial complexes where large shipyards, smaller builders and equipment makers cluster.

"All of K-shipbuilding, including small and mid-sized shipyards and equipment makers, must gather its capabilities around the Shipbuilding M.AX Alliance to grow together through M.AX," Industry Minister Kim Jung-kwan said at a strategy meeting in Mokpo that drew about 200 people from 100 organizations, including shipbuilders, shipping companies, equipment suppliers, universities and research institutes.

The first flagship project centers on Mokpo and Yeongam, where 596 billion won ($445 million) in public and private investment will build a lighthouse factory applying M.AX technology to mid- and large-assembly processes and spread it to nine nearby partner companies. HD Hyundai Samho will lead development of the block production technology.

Under a memorandum of understanding signed at the event, HD Hyundai Samho and Daeha Industry will invest 400 billion won ($299 million) in a site within the Daebul Free Trade Zone in Yeongam County to build an AI-driven autonomous shipyard lighthouse factory and share the results with regional shipbuilders. The Gwangju-Jeonnam integrated special city and Yeongam County will support the effort by attracting government projects and easing regulations.

A second project in Geoje and Busan will draw 500 billion won ($374 million) in joint investment to introduce an AI-based design and collaboration platform for outfitting production, with Samsung Heavy Industries and Hanwha Ocean converting their drawing design systems to AX and sharing design and production information with equipment suppliers. Busan is home to about 60 percent of the country's equipment makers.

The third project, in Gunsan, will receive 310 billion won ($232 million) in public and private investment to develop and spread AX technology for sub-assembly processes. The shipyard declined after newbuilding work halted in 2017, but the ecosystem is showing signs of revival after Jei Ocean Heavy Industries acquired the Gunsan yard and announced plans to resume newbuilding.

The ministry said the gap in AI adoption between large and smaller shipbuilders is substantial, with large yards already deploying technology such as drone-based process monitoring while small and mid-sized builders and equipment makers remain largely manual. It cited market encroachment by competitors and labor shortages as reasons for extending the effort beyond ship intelligence.

Separately, the ministry and the oceans ministry released the first basic plan for developing and commercializing autonomous ships for 2026 to 2035 under the Autonomous Ship Act, targeting the start of operations and the top spot in orders for International Maritime Organization Level 4 fully autonomous vessels by 2035.

Since the alliance began operating in December 2025, shipping companies including HMM and Pan Ocean have shared more than 500 terabytes of operational data, 33 areas of international standard demand for autonomous navigation have been identified, and a 460 billion won ($344 million) AI fully autonomous ship research and development project began in July 2026.