South Korea’s Ministry of Oceans and Fisheries has set aside US$420 million to Northern Sea Route (NSR)-related projects in its 2026 budget.

The budget was unveiled at a cabinet meeting on 16 September, and includes US$18.5 million for training manpower and $51.7 million for developing ice-class and research vessels.

President Lee Jae-myung’s five-year plan includes developing South Korea into a maritime power to spearhead the NSR era. Climate change and global warming has made Arctic shipping viable, albeit only in summer in the Northern Hemisphere.

Oceans and Fisheries Vice-Minister Kim Sung-beom said South Korea aims to have an ice-class ship in service by January 2030.

Subsidies will be given to South Korean shipping companies for building ice-class ships.

The NSR could reduce the sailing distance between East Asia and North Europe, and the South Korean government believes this could lower logistics costs for exporters and grow related industries such as shipbuilding, ship finance, and commodity trading.

Particularly, the NSR could allow Busan, South Korea’s main container port, to become a launchpad for an East Asia-North Europe container route, or even as a transhipment centre, helping to develop the economy in the southern part of the country.

It is believed that the South Korean government is anxious to act as Chinese container shipping companies, specifically Safetrans and Yangpu Newnew Shipping, have already begun operating services via the NSR.

President Lee, who was elected in June after his predecessor Yoon Suk-yeol was forced to step down after a failed attempt to impose martial law, is making an all-out push to revitalise Busan as South Korea’s shipping centre. The Ministry of Oceans and Fisheries is set to relocate from the capital Seoul to Busan by year-end, and it is seeking to convince HMM, the country’s national shipping line, to do the same.
Oceans and Fisheries Minister Jeon Jae-so said: “The government must take the lead in pioneering uncharted territory so that public institutions and businesses can follow suit. I will personally oversee the necessary preparations.”

His ministry has established a “Northern Sea Route Advisory Committee” consisting of experts from various fields and will also set up a dedicated organisation formed by this committee and inter-ministerial participation.