Korea To Build Up Private Yacht, Marine Leisure Sectors

by Mary Swire, Tax-News.com, Hong Kong

16 May 2008

Korea plans to build up its private yacht and marine leisure sector as a future growth industry, the government announced last Wednesday.

The Ministry of Knowledge Economy said the marine leisure sector promises solid growth and could help diversify and expand the country's dominance in the world shipbuilding industry.

According to a report from the official KOIS news service, it revealed that annual worldwide orders average over one million boats and jet skis worth about USD47bn.

The United States, France, Australia and Italy control 90 percent of the global market, with Japan dominating the jet ski field.

The industry covers luxury yachts, motorboats, jet skis, sailing vessels and windsurfing boards.

"The government is considering tax breaks, building more marinas and easing regulations on boat operations to fuel domestic interest that can lead to greater production," an official was quoted by the KOIS as explaining.

He stated most of the current demand is centered around the United States, Australia and Western European countries, but revealed that a growing number of orders are coming from Asia.

There were about 8,000 private boats and marine leisure craft in Korea as of 2006, up sharply from 3,700 in 2000. The number is expected to grow to 25,700 in 2012 with the market ballooning to 700 billion won (USD667m), according to the report.

The Ministry argued that the marine leisure sector is attractive because Korea has the basic infrastructure to make boats and related items like engines as well as navigation and communication systems. At present, most of the value-added boats and yachts are made abroad.

It added that an active marine leisure industry could fuel new business opportunities in the financial, insurance and general service sectors as well as create new jobs at manufacturing companies and smaller shipyards.

As of 2006, there were 1,400 dedicated marine leisure companies and shipyards in the world that hired roughly 930,000 workers, the Ministry concluded by announcing.

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