The Japanese government, aiming to revive its domestic shipbuilding industry which has seen its presence in the global market significantly diminished due to competition from South Korea and China, has decided to provide more than 1.8 trillion won in subsidies to major shipbuilders, according to reports by the Nihon Keizai Shimbun (Nikkei) and other media outlets.

Japanese Minister of Land, Infrastructure, Transport and Tourism Kaneko Yasushi announced during a press conference following a Cabinet meeting today (the 4th) that the government will provide 213.1 billion yen, or approximately 1.843 trillion won, to three shipbuilders over a 10-year period leading up to fiscal year 2034.

Broken down by company, Imabari Shipbuilding, Japan's top shipbuilder, and its affiliate Tadotsu Shipbuilding will receive 113.8 billion yen (approx. 984.2 billion won); Japan Marine United (JMU), the second-largest, will receive 49.4 billion yen (approx. 427.2 billion won); and Namura Shipbuilding along with its subsidiary Hakodate Dock will receive 49.9 billion yen (approx. 431.5 billion won).

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

The Japanese government previously established a Shipbuilding Industry Regeneration Fund worth 350 billion yen (approx. 3 trillion won) to support plans to attract a total of 1 trillion yen (approx. 8.6 trillion won) in public-private joint investments into the shipbuilding industry over the next 10 years.

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

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