Calls grow for Korea strategic fleet amid Hormuz risks

March 18 (Asia Today) -- South Korea's shipping industry is calling for the creation of a state-backed "strategic merchant fleet" of up to 200 vessels to safeguard supply chains amid rising geopolitical risks, including disruptions in the Strait of Hormuz.

The proposal was raised at a National Assembly public hearing on maritime strategy, where industry leaders warned that heavy reliance on foreign-flagged ships poses a growing economic and security risk.

Park Jeong-seok, chairman of the Korea Shipowners' Association, said vessels operating under foreign flags could refuse to sail or avoid high-risk areas during crises, potentially disrupting critical imports such as crude oil and liquefied natural gas.

A strategic merchant fleet would operate commercially in peacetime but could be requisitioned by the government in emergencies to ensure stable logistics.

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South Korea depends on maritime transport for nearly all of its trade, with shipping accounting for about 99.7% of total cargo movement. However, the share of energy transported by Korean-flagged vessels remains below 50%, including 48.9% for crude oil and 34.5% for liquefied natural gas as of 2024.

Industry forecasts suggest the LNG share could fall to zero by 2037 without policy intervention.

Experts said similar systems are already in place in countries such as the United States and Japan, and stressed that South Korea must act quickly given its high trade dependence.

A proposed roadmap includes passing relevant legislation by next year and building about 10 vessels annually starting in 2028, with a goal of securing 200 ships by 2040.

Professor Woo Soo-han of Chung-Ang University said the initiative could strengthen energy security and generate economic benefits estimated at about 59 trillion won (approximately $44 billion).

Industry officials urged the government to support the plan as part of a broader national security strategy.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260318010005510