Japan to Provide 1.8 Trillion Won in Subsidies to Domestic Shipbuilders to Revive Shipbuilding Industry

The Japanese government, aiming to revive its domestic shipbuilding industry which has seen its presence in the global market significantly shrink due to competition from South Korea and China, has decided to provide more than 1.8 trillion won in subsidies to major shipbuilders.

Japanese Minister of Land, Infrastructure, Transport and Tourism Kaneko Yasushi announced during a press conference following a Cabinet meeting today (the 4th) that it has been decided to provide approximately 1.843 trillion won in Korean currency to three shipbuilders over a 10-year period until fiscal year 2034.

This marks the first instance of support from the "Shipbuilding Industry Regeneration Fund" established by Japan to strengthen its domestic shipbuilding industry.

Previously, the Japanese government established a shipbuilding industry regeneration fund worth approximately 3 trillion won, as part of a plan to induce around 8.6 trillion won in public-private joint investments into the shipbuilding sector over the next 10 years.

The subsidies are expected to be used for automation investments and research and development by each shipbuilder.

(Photo: Getty Images)
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