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South Gyeongsang Province will move aggressively to develop the ship maintenance, repair and overhaul (MRO) industry as a future strategic sector after winning a competitive grant from the Ministry of Trade, Industry and Energy.
By securing an additional project to support design engineering for small- and medium-sized shipbuilders, the province expects to accelerate efforts to strengthen competitiveness across the shipbuilding and defense ecosystems.
The ministry selected South Gyeongsang for the “Support to Strengthen the Global Competitiveness of Small- and Medium-Sized Ship Warship MRO” program. The project will run from 2026 through 2030 and will receive KRW 49.5 billion (≈ $37.1 million). South Gyeongsang will lead a cross-regional partnership with Busan, Ulsan and South Jeolla Province.
The program aims to help small shipyards and parts suppliers enter the global warship MRO market, including opportunities with the U.S. Navy. The province plans to support the industrial transition of 60 local companies and train 600 specialized workers.
Officials note the global warship MRO market is worth roughly KRW 88 trillion a year (≈ $66 billion), with U.S. Navy demand alone estimated at about KRW 20 trillion (≈ $15 billion). South Gyeongsang plans to establish the country’s first warship MRO cluster centered on Changwon, Tongyeong, Geoje and Goseong to capture early market share.
To achieve that, the province will build infrastructure including a comprehensive Warship MRO Support Center, a global contract-information network and a U.S. field network. It will integrate advanced technologies — AI-based condition diagnostics and smart production processes — to secure a decisive technological edge.
The province will also install materials and component performance-testing equipment and support international certification to help local firms qualify for U.S. Navy contracts. It will strengthen capabilities to meet procurement prerequisites such as the Cybersecurity Maturity Model Certification (CMMC) and ship-maintenance agreements (MSRA·ABR).
South Gyeongsang will run workforce programs in parallel. Working with Gyeongnam Technopark and local universities, the province will create an MRO training platform offering seven specialized courses — certification, smart maintenance, engines, hull work and more — and support hiring with recruitment subsidies and training stipends.
The province will also apply to the Defense Acquisition Program Administration’s Defense Innovation Cluster competition, scheduled to be announced in June, seeking an additional KRW 49.0 billion (≈ $36.8 million). If selected, the total project budget would expand to nearly KRW 100 billion (≈ $75 million).
Separately, South Gyeongsang was selected for the Ministry of Trade, Industry and Energy’s Design Engineering Technical Support for Small Shipbuilders program. From 2026 to 2030, this project will invest KRW 24.0 billion (≈ $18 million) to strengthen small shipbuilders’ design capabilities.
The program will provide hands-on design support, advanced analysis and model testing, and will develop new eco-friendly ship models such as LNG-propelled vessels and offshore-wind support ships. It will train 100 design specialists a year — 500 in total — to help resolve chronic staffing shortages at small shipyards.
Imi Hwa, director of industry for South Gyeongsang Province, said, “South Gyeongsang is the country’s largest hub for defense-system companies and major shipyards. By building on warship MRO and design engineering, we will secure the global competitiveness of K‑marine defense.”
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