Korean gov't ready to break the ice on Arctic shipping project

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Korean gov't ready to break the ice on Arctic shipping project

Published: 26 Sep. 2025, 13:03 Updated: 28 Sep. 2025, 18:23

Audio report: written by reporters, read by AI

The Araon icebreaker sails through the Arctic [KOREA POLAR RESEARCH INSTITUTE]

The Korean government is stepping up preparations for the era of Arctic shipping, increasing budgets, hiring more personnel and launching a new command body dedicated to the project.

Work has already begun on a pilot voyage scheduled for next year. But challenges remain, including developing a viable business model and addressing environmental concerns.

The Ministry of Oceans and Fisheries said Thursday it recently commissioned a study on the economic feasibility of commercial operations on Arctic shipping routes.

The project aims to assess the real economic impact of Arctic navigation, examine other countries’ preparedness and develop concrete strategies. Reviewing international regulations and tracking the moves of global shipping companies are also listed as priorities.

Developing Arctic routes is one of the Lee Jae Myung administration’s flagship policies. Next year’s budget for Arctic-related projects totals 549.9 billion won ($389.6 million), up 23.4 percent, or 104.1 billion won, from this year. Of that, 61.1 billion won will be used to build a new icebreaking research vessel.

Funds have also been earmarked to support construction of icebreaking and ice-class commercial ships. The budget for Busan New Port in Jinhae has been expanded in anticipation of increased cargo volumes, while a new program to train polar navigation specialists has been added. The government said it aims to accelerate human resource development in preparation for both the pilot voyage and eventual full-scale operations.

A picture of the Araon icebreaker [KOREA POLAR RESEARCH INSTITUTE]

Organizational changes are moving quickly. The government confirmed the ministry’s relocation to Busan and added a maritime and fisheries secretary within the presidential office.

By the end of the year, a presidential committee on Arctic routes will be launched with participation from public- and private-sector experts. The ministry’s current task force will be upgraded into a pan-government Arctic route promotion headquarters. The National Assembly has also begun drafting and amending relevant laws.

Previous administrations also paid significant attention to Arctic exploration. In 2012, then-President Lee Myung-bak became the first national leader to visit Greenland, meeting with local officials to discuss cooperation in resource development and Arctic navigation. His efforts helped Korea gain permanent observer status at the Arctic Council in 2013, alongside Japan and China.

Under the Park Geun-hye administration, trial voyages began. From 2013 to 2016, Hyundai Glovis and CJ Logistics conducted five test runs. But results were mixed: Russia withheld sea ice data, icebreaking ships were in short supply and high insurance and transit fees weighed heavily on costs. Following the outbreak of the Russia-Ukraine war in 2021 and subsequent sanctions against Moscow, progress largely came to a halt.

Hanwha Ocean's icebreaker [HANWHA OCEAN]

The potential remains, but so do the hurdles. At present, the most viable option is the Northeast Passage (NEP) along Russia’s northern coast. Korea does not import Russian liquefied natural gas and prospects for doing so remain slim given diplomatic constraints.

For Korea, the Arctic route could only serve as a meaningful backup in global supply chains if it becomes practical for Europe-bound trade. In practice, this would require container ships departing Korea to make multiple stops in Europe. But the logistics pose challenges.

“A Chinese ship can depart from home, call at several ports and then head north,” said an official from Korea’s shipping industry. “But Korea would need to detour through China, Taiwan or Singapore before heading north again, which is inefficient.”

Major global shipping companies — including MSC, Maersk and CMA CGM, which together account for about half of the global container shipping market — have all publicly pledged not to use the NEP. Large European shippers and British marine insurers have made similar commitments, citing diplomatic tensions with Russia and environmental risks. Korean shipping companies, which follow global standards, are unlikely to ignore these positions.

A November 2024 report by the Korea Maritime Institute emphasized that even outside the Arctic, the shipping industry is embracing eco-friendly policies such as “smart ports” and “green shipping.” It concluded that for Arctic routes to develop into a viable international shipping corridor, environmental and sustainability challenges must be addressed more proactively.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JANG WON-SEOK [[email protected]]