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Busan Metropolitan City Revamps Investment Subsidy System for Shipping Industry, Opening the Door to Attract Outstanding Shipping Companies

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Busan Metropolitan City (Acting Mayor Kim Kyung-duk) announced that it will revamp its investment support system for the shipping industry and implement tailored support policies to establish itself as a hub city for the shipping industry.

Under Article 2 of the Shipping Act, the shipping industry includes maritime passenger transportation, maritime freight transportation, shipping brokerage, shipping agency services, vessel leasing, and ship management.

This reform is being carried out to encourage investment in Busan by outstanding shipping companies and to secure future growth engines through the clustering of the shipping industry, in line with the City’s goal of becoming a global hub city.

Previously, the central government’s local investment promotion subsidy system primarily supported manufacturing, information and communications, and knowledge service industries, effectively excluding the shipping sector. In addition, the City’s own subsidy system made it difficult for shipping businesses to meet eligibility requirements due to the unique nature of their asset structures and employment models, and even when they qualified, there were insufficient support categories suited to the industry’s characteristics.

In response, Busan Metropolitan City plans to introduce various special investment subsidy measures for shipping companies relocating to or newly investing in Busan by revising the “Busan Metropolitan City Ordinance and Enforcement Rules on the Promotion of Business and Investment Attraction.”

The amended ordinance, which establishes the legal basis for providing investment subsidies to the shipping industry, has passed the relevant standing committee of the Busan Metropolitan City Council and is scheduled for final approval at the plenary session on April 29.

In addition to restructuring the subsidy system, the City will continue to identify and implement customized support policies to improve the investment environment for the shipping industry.

A City official stated, “With the restructuring of the investment subsidy system—previously a barrier to attracting shipping businesses—we expect to pave the way for bringing in outstanding shipping companies,” adding, “We will promptly reorganize the investment subsidy system for the shipping industry to help drive the realization of Busan’s vision as a global hub city.”