Jang Seob Yoon
Research expert covering South Korea
Maritime transport in South Korea - statistics and facts
While South Korea is a peninsula, its closed borders with North Korea mean that it is essentially an island. Within this context, maritime transport is a key aspect of South Korea’s engagement in international trade given its export-oriented economy. Highlighted by the country being home to one of the largest ports in the world, several marine ports and facilities operate under the authority of the national and local governments. The five major domestic ports, Busan, Incheon, Gwangyang, Pyeongtaek-Dangjin, and Ulsan, are spread across the nation’s three coastlines.
How is water transport utilized in South Korea?
Ports in South Korea are categorized into two types: trade ports and coastal ports. Trade ports are mainly used for cross-border trade, while coastal ports are mostly used for smaller scale domestic transport. Such facilities are often a lively place of activity, with maritime transport being the most used medium for international cargo and the second-most used medium for moving freight within the country. Additionally, passengers have the option to ride ferries to visit domestic islands like Jeju, as well as neighboring countries like Japan.Which shipping companies fly the South Korean flag?
Flag carriers refer to shipping companies registered to a specific country. The largest South Korean flag carrier is HMM. Formerly known as Hyundai Merchant Marine, the company’s two major shareholders are public institutions, effectively rendering the company also one. HMM boasts a global presence and is part of THE Alliance alongside Hapag-Lloyd, Ocean Network Express, and Yang Ming. In the private sector, SM Korea Line and SM Line demonstrate the focus of domestic conglomerate SM Group on sea freight shipping. In the latter’s case, the company was established in 2016 after acquiring Hanjin Shipping’s America and Asia shipping routes in the aftermath of the former shipping giant’s bankruptcy.Outlook on maritime transport
Sea transportation is a vital part of the worldwide supply chain, with ripple effects to related industries such as shipbuilding, steel, and other manufacturing sectors. However, it is also exposed to economic and geopolitical risk on a global scale, resulting in a cyclical business climate, with the industry experiencing difficulties over time. With additional regulatory pressure for environmentally friendly vessels expected in the future, it remains to be seen how domestic stakeholders will navigate these challenges in the future.
