![Ministry of Oceans and Fisheries building. [Photo by reporter Kim Yu-jin]](https://image.ajunews.com/content/image/2026/05/07/20260507103321817635.jpg)
The Ministry of Oceans and Fisheries said May 7 it will quickly execute a total of 22.6 billion won in supplementary budget funds to support coastal shipping operators facing financial strain from a surge in global oil prices. The package includes oil price-linked subsidies and compensation for operating losses.
Although the maximum price for marine diesel was set at 1,923 won on March 27, it remains about 32% higher than in February. Tax-free diesel rose 68.5% to 1,382 won, the ministry said.
To accelerate support, the ministry revised the payment schedule for fuel tax subsidies (6.7 billion won) and oil price-linked subsidies (6.2 billion won). Amounts that were to be paid quarterly will instead be paid monthly. Local maritime and fisheries offices and the Korea Shipping Association plan to notify operators of application procedures and methods.
Operating-loss compensation had been calculated based on deficits tallied at year’s end. To speed execution, the ministry will disburse part of the deficit incurred up to those points in June and August. It will then make a final payment within 30% of the deficit amount after an accounting review by the end of October, reflecting operating results from January through September.
Of 99 coastal passenger routes, the ministry will disburse 2.9 billion won in additional operating-loss support for 42 routes by next month. Eligible routes include 29 state-subsidized routes and 13 deficit routes, including routes aimed at creating a “one-day living zone.”
The remaining 57 routes will be supported using 6.8 billion won secured through a supplementary budget for the “2026 temporary operating-loss support project for short-term deficit routes.” Funds will be paid in three rounds at two-month intervals starting next month.
The ministry said the subsidies are expected to ease some of the burden on operators covering losses on state-subsidized and deficit routes.
Hwang Jong-woo, the oceans and fisheries minister, said coastal passenger ships are “like a lifeline” for South Korea’s coast and that disruptions could cause serious inconvenience for island residents. He said the ministry will “do everything possible” to support normal operations through rapid fiscal execution.
* This article has been translated by AI.
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