Korean Shipbuilding Industry to Implement AI Solutions Amid Labor Shortages

Domestic shipbuilders are facing chronic labor shortages despite a surge in orders, prompting the government to establish an artificial intelligence (AI)-based production innovation hub in the Daebul Industrial Complex in Yeongam, South Jeolla Province. The initiative aims to create a testing center where small and medium-sized shipbuilding equipment companies can directly trial and apply AI and automation technologies to enhance productivity and improve working conditions.

On June 9, the Daebul Free Trade Zone Management Office held a meeting with relevant organizations and a briefing for tenant companies regarding the establishment of the 'Shipbuilding Industry AX Demonstration Center' in Yeongam.

The Shipbuilding Industry AX Demonstration Center is part of the Ministry of Trade, Industry and Energy's initiative to build a support foundation for 'Shipbuilding and Marine Production Process Innovation (AX).' Mokpo National University will serve as the lead organization, constructing demonstration and research facilities within the Daebul Free Trade Zone to establish a technology demonstration and support system for production processes.

The Daebul Industrial Complex is a major shipbuilding cluster in South Korea, centered around HD Hyundai Samho, with hundreds of shipbuilding equipment companies located there. While production volumes have increased due to a recent boom in the shipbuilding sector, many companies are struggling to secure on-site labor. This has heightened the need for the introduction of AI and automation technologies to improve productivity and working conditions.

During the meeting, representatives from HD Hyundai Samho, Mokpo National University, the Jeonnam Daebul Industry-Academic Cooperation Foundation, and the Jeollanam-do provincial government discussed the current status of the project and explored future operational directions and collaboration strategies.

Participants agreed to strengthen their cooperative framework to ensure the demonstration center becomes a key hub for the digital transformation of the local shipbuilding industry and to continuously develop support measures to enhance the utilization of local companies.

At the subsequent briefing for tenant companies, updates on the project and plans for the center's establishment were presented, along with future support programs. Attending companies expressed optimism about the demonstration center's potential to address productivity challenges, labor shortages, and improve working conditions, while requesting ongoing communication and information sharing to ensure that their needs are adequately reflected in the center's operations.

An Chang-hyung, head of the Daebul Free Trade Zone Management Office, stated, "We will strengthen cooperation with relevant organizations to ensure that the Shipbuilding Industry AX Demonstration Center becomes a core hub for the digital transformation of the local shipbuilding industry and actively support tenant companies to achieve tangible results."