[Key Contents] 
- Investing KRW 14 trillion to develop Jinhae New Port, securing the world's largest port facility in Busan Port
- Increasing efficiency by selecting a single operator for all nine berths in the first phase of Jinhae New Port
- Securing logistics bases in emerging markets and providing priority use rights, etc. to Korean small and medium-sized export and import companies
- Attracting global logistics companies by providing a port hinterland complex the size of 500 soccer fields
- Energy self-sufficient port with 100% renewable energy by 2050


The Ministry of Oceans and Fisheries (MOF, Minister Kang Do-hyung) has established a “Global Hub Port Construction Strategy” to secure a stable export and import logistics system even in the face of global supply chain uncertainty, announcing it at the Ministerial Meeting on Strengthening Industrial Competitiveness on Wednesday, December 11.

As trade disputes between countries intensify, the global logistics market is rapidly being reorganized and uncertainty in the supply chain is increasing due to the conflict in the Middle East. Shipping lines are reorganizing their shipping alliances and increasing the size and number of their vessels to cope with this uncertainty. In particular, Maersk, and Hapag-Lloyd, the world's second-largest and fifth-largest shipping companies, respectively, merged to form a new alliance—the Gemini Shipping Alliance—and announced a plan to operate a fleet centered on key ports.

In line with the changes in the shipping industry, major ports worldwide such as China and Singapore are trying to attract global shipping companies by enlarging terminals, building smart ports, and making ports eco-friendly. As changes in the supply chain are expected to accelerate due to the strengthening of protectionism in major countries, it is necessary to reinforce competitiveness proactively to continue to attract global shipping companies to Busan Port amidst the changing logistics environment.

Busan Port handles 76.8% of domestic container traffic, particularly over 97% of transshipment traffic. It has maintained its position as the world's second largest transshipment port since 2015, attracting many shipping lines and providing a stable supply chain for the Korean economy.

Since multiple terminal operators manage the port on a small scale, however, issues such as inter-terminal transshipment (ITT) and inefficiencies in berth management have emerged, causing some operational difficulties at Busan Port. There is a need to transform Busan Port into a mega port and improve its operational structure to respond to the enlargement of ships and strengthen shipping alliances.

Accordingly, the government has prepared this plan to solidify the status of Busan Port as a global hub port and raise its competitiveness to the world's top 3 level. MOF will improve the efficiency of Busan Port’s operation to process shipping alliance cargo in a timely manner, accelerate the transition to an eco-friendly, smart port, and create a port that leads international standards.

First, in line with the expansion of the fleet, MOF will invest KRW 14 trillion by 2045 to construct Jinhae New Port and secure Busan Port as the world's largest port facility. It will build 66 berths in Busan Port, the same number as Singapore’s TUAS Port, which is currently under construction and ranks first globally in transshipment. The constructed facility will stably dock 30,000 TEU-class vessels—surpassing the world's largest vessels of 24,000 TEU—and create a container storage space that is 1.5 times larger than the existing dock. 

Second, a single operator will be selected for all nine berths in Phase 1 of Jinhae New Port to establish the largest-scale operational system in the country. In this case, it will be possible to secure cargo handling capacity of over 6 million TEU, which will enable smooth handling of the largest alliance volume (THE, 6.5 million TEU) currently calling at the Port of Busan. Having a single operator handle the entire alliance's cargo volume enables efficient management of berths and minimization of transshipment to other berths. If the existing port terminal operators merge, MOF will provide up to KRW 10 billion in incentives to cover facility integration costs and rental fees.

Third, to strengthen the connectivity between Busan Port as a hub port and overseas supply chain bases, overseas logistics centers in promising bases for supply chain reorganization such as the Eastern United States, Southeast Asia, and Europe will be expanded. The current 5 logistics centers overseas will be increased to 8 centers by 2027 and to 16 centers by 2032 to provide Korean SMEs with services such as priority usage rights and logistics consulting. To ensure smooth import and export logistics, MOF will also concurrently pursue securing stakes and operating rights in key hub terminals including those at the US West and East Coast ports. Moreover, it plans to create an international logistics fund worth KRW 1 trillion to support financing for companies expanding overseas.

Fourth, MOF will supply a port hinterland complex the size of 500 soccer fields (3.62 million m2) near Busan Port to attract global logistics companies. It will provide institutional support—such as securing strategic reserves and supplying large-scale land parcels—to attract investment in promising companies that will revitalize the local economy and strengthen the ability of Busan Port to generate its own cargo volume. Moreover, MOF will link with Gadeokdo New Airport to be positioned nearby to grow Busan Port into a land-sea-air logistics hub.

Lastly, MOF will make ports eco-friendly by increasing the proportion of renewable energy generation within ports to 25% by 2032 and 100% by 2050. Also to be constructed are eco-friendly power generation facilities such as solar power, fuel cells, and offshore wind power as well as infrastructure for supplying Busan Port with eco-friendly ship fuels such as methanol and ammonia. In addition, MOF plans to improve the air quality in port areas and contribute to achieving carbon neutrality by converting the port's unloading equipment into carbon-free power sources and decarbonizing the port operation process. In conjunction with the port's eco-friendly transformation, a new KRW 500 billion fund will be established to support the development of smart ports; thus contributing to the creation of intelligent ports.

“The restructuring of supply chains due to the rise of protectionism, regional conflicts, and changes in shipping alliances is both a crisis and an opportunity for our ports. Based on the Global Hub Port Development Strategy we have established, we will grow Busan Port into one of the global top 3 ports and transform it into a global logistics center that firmly supports South Korea’s dynamic economy,” Minister Kang Do-hyung said.