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Photo=HMM |
[Alpha Biz= Kim Jisun] SEOUL – South Korean shipping companies are grappling with mounting pressure to accelerate their green transition following the International Maritime Organization’s (IMO) newly announced mid-term measures.
Industry insiders warn that Korean carriers face significant challenges: rapidly rising carbon levies, overlapping burdens from the EU’s environmental regulations, and a low proportion of eco-friendly vessels in their fleets.
A major domestic shipping company reported that calculating upcoming IMO carbon charges has become an intensive task since April, when IMO disclosed formulas linking fuel type and emissions levels to levy amounts. From 2028 onward, Korean carriers are expected to pay hundreds of billions of won annually. One company representative said, “The calculation changes depending on total fuel use and type. We’re scrambling to find ways to measure—and ultimately reduce—these charges.”
The Ministry of Oceans and Fisheries estimated earlier this year that Korean carriers could face multi-trillion-won charges under IMO’s system, citing 2023 data. Industry projections show that levies of roughly KRW 700 billion in 2028 could double to KRW 1.4 trillion within two years.
Meanwhile, the EU has already implemented its own carbon regime, launching the EU Emissions Trading System (EU ETS) last year and rolling out the FuelEU Maritime regulation in 2024. About 173 Korean-flagged vessels calling at European ports are expected to bear KRW 170 billion in annual carbon costs this year, rising to KRW 1 trillion by 2050—before IMO levies are even added.
Despite these pressures, Korea’s readiness remains limited. Only 5.9% of Korean-operated vessels are eco-friendly, according to the Korea Shipping Association. Even if new green ships are ordered now, major shipyards are fully booked until after 2028.
Fuel availability is another bottleneck. As of 2023, the maritime sector alone requires 48 million tons of alternative fuels annually, but total global supply across all industries is just 63 million tons, highlighting the scale of the shortfall.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
