Academic Report a study on South Korea’s policy for Arctic Logistics


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Figure 1: Arctic Transit
Figure 1: Arctic Transit

Shipping and shipbuilding would benefit highly on the Arctic agenda of Korea, which became an important shipbuilding nation relatively late. The first major yard was established in 1968 as part of a deliberate and focused government policy that quickly yielded results. By the early 2000s, Korea was the world’s leading shipbuilder, but fierce competition loomed, particularly from China. Seeking to sustain the global position of its shipbuilding, the Korean government cooperated closely with the chaebols, the large industry conglomerates that control the yards, encouraging a focus on advanced, high-value ships like LNG carriers. When Arctic shipping began attracting global attention, it was only logical for major Korean companies to explore opportunities in a market expected to grow. In July 2013, the Korean yard DSME won the tender for building 15 ice-breaking LNG carriers for the Yamal LNG project in the Russian Arctic, the first of its kind.


The Korean government is eager to develop and broaden this engagement: it has made development of Arctic shipping a national priority and encouraged shipping companies to engage in Arctic operations. In 2013, Hyundai Glovis, a shipping company closely connected to Hyundai Motors and with transportation of cars and trucks as its main line of business, announced that it would test the NSR for oil transport, conducting a trial voyage with 37,000 tons of naphtha from the Baltic Sea to Korea.66 However, plans for developing a regular cargo route were abandoned; in interviews conducted by Korean researchers, company representatives cited several problems. Chief among them were the extra costs deriving from the need to reload containers, relatively small cargo volumes, and difficulties in matching cargo and ships. Other negative factors were unpredictable escort fees and icebreaker availability as well as costs associated with protection of cargo on board, crew training and ship maintenance due to extreme environmental conditions.
Two other major shipping companies—the container liners Hanjin Shipping and Hyundai Merchant Marine—announced in 2013 that they would conduct trial navigation on the NSR in line with the priorities declared by the government. However, these plans were also cancelled, mainly due to developments within the Korean shipping industry. Several major Korean shipping companies were financially overstretched, and some were on the verge of bankruptcy in 2015–16. In a situation where companies had to restructure and cut costs, exploring long-term possibilities in the Arctic through costly trial voyages could not be prioritized. However, in 2017 Hyundai Merchant Marine came back with a new plan for a regular route with relatively small container ships starting trial runs in 2020. Korean shipping companies have also been involved in deliveries of equipment to oil and gas projects on the Yamal Peninsula.

In addition to shipbuilding and shipping, Korea has aspired to become a hub for the distribution of oil and other commodities transported through or from the Arctic; the authorities have singled out Busan port as well as Ulsan further north as particularly well placed logistical hubs, should the NSR become commercialized. But a low oil price has postponed several Arctic projects, perhaps indefinitely; and although some Arctic oil projects are likely to be implemented, volumes will be much smaller than previously expected.


Accumulate Arctic Sea Navigation Knowledge


• Establish and enforce follow-up steps for pilot navigation along the Arctic Sea routes
• Operate a power advisory body comprising of vessel and freight holders and bulk cargo between Asia and Europe
• Provide consulting services and market research assistance to encourage entrance into the A by Korean maritime logistics companies

On the other hand, the Arctic Logistic Routes will probably harm the environment considerably. The Northern countries and native peoples are having a hard time from the results of climate change, global warming, and increasing sea levels, all of which are the consequences of industrial development and pollutions. Changes in Arctic atmosphere and weather impact the world as a whole. Everyone is therefore responsible for the Arctic's environmental change. The climate in the Arctic is of great interest and significance to everyone. Communication between Arctic states and non-Arctic states is essential for successful Arctic area oversight. It is therefore Korea's duty to create a cooperation structure among other Arctic Council observer states, to enable non-Arctic states to support the Arctic's environmental sustainability and to promote sustainable development in the Arctic region in accordance with the Arctic nations.


The Arctic ice retreat will provide new growth possibilities, but it also raises serious challenges to Arctic peoples ' livelihoods and their ecosystems. The diminishing sea ice presents new business opportunities in the Arctic in fields such as Northern Sea Ways asset creation and sales. The increase in human activity, though, can also impact the marine ecosystem, a fragile part of the world, and endanger residents ' livelihoods, including the Arctic indigenous peoples.

 IV. Conclusion


1. Summary of the study
It would not be honest to point out that the Arctic possesses the central role in the foreign relations of South Korea. But an analysis of South Korea’s Arctic strategy guides us to the summery that the problems being addressed in this area are closely connected with the country’s long-term development goals: energy, transport and environmental security; development of innovative industries; and using the country’s economic capacities in international megaprojects. This means that, moving forward, the Republic of Korea will always follow proactive policies with regard to its interests in the Arctic, regardless of any changes in the government.


"Given the rippling effects of Arctic change, environmental and industry alike, Singapore that is gaining and losing can and obviously will be, as scholars say" deep Asian involvement in Arctic affairs may just strengthen international governance efforts on key areas such as sustainable development, sea safety and environmental protection.


The Climate has contributed to a stronger need for Arctic Ocean protection. Therefore, in order for Arctic strategy to be applied effectively, focused on coordination with the Arctic states, Korea needs to respect and conform to Arctic treaties and participate actively in the processes of treaty making.


The fact that Korea's Arctic policy, which is focused mainly on cooperation with the Arctic states, is progressing favorably, shows the Arctic nations ' policy is reasonable, appropriate, and agreeable. To uphold this rule, the position of the Arctic Circle must be studied in great detail.
2. Suggestions
There some suggestions for the development of Arctic logistics. Firstly, Korean government should expand its budget to support further research. Secondly, privet research institutions and logistic companies should be encouraged to actively participate in the process. Lastly, environmental affects should be taken into consideration so that no harm could be caused.
Another advice could be that private research institutions may be involved in the research processes.
The ambition of this research report is to understand South Korea’s perceptions of the research strategies with Arctic nations’ in the Arctic logistics. To achieve this, this study is set up as descriptive and exploratory research. The goal of analytical research is to describe the exact profile of the situation, which focuses on analysing South Korea’s policy that may develop Arctic logistics successfully. Exploration studies were chosen as a tool for collecting key information for this research. Exploratory research is usually used to better comprehend the situation. Even though it is not made to find finale for this research. This research is expected to provide explanation on South Korea’s foreign policy towards the advancement of Arctic Routes.
South Korea's prior and post -admission Arctic policy has sharply changed from one that was non-existent to one that covers areas of central interest for Arctic Council members and permanent participants such as economic development of indigenous communities, conservation of the environment, development of a safe maritime environment and capacity building solutions It is clear that since Singapore’s admission, the non-Arctic state has contributed significantly to the AC’s objectives. Though small, its role in balancing the power in the region and expertise in providing scalable solutions may prove to be crucial as the region develops further.

The lists of references



  1. Kenneth J. Bird et al., Circum-Arctic Resource Appraisal: Estimate of Undiscovered Oil and Gas North of the Arctic Circle, USGS Fact Sheet 2008-3049,

  2. Arctic Policy of the Republic of Korea // Arctic Portal Library.URL: http://www.library.arcticportal.org/1902/1/Arctic_Policy_of_the_Republic_of_Korea.pdf

  3. Young Kil Park. Arctic Prospects and Challenges from a Korean perspective // East Asia–Arctic Relations. Boundary, Security and International Relations. Paper No. 3. December 2013. Centre for International Governance Innovation (CIGI), Waterloo, Ontario, p.

  4. Kossa M. South Korea’s Positioning in the Arctic // World Policy Blog.URL: http://www.worldpolicy.org/blog/2015/09/30/

  5. The European Union is Desperate to Get its Hands on Arctic Raw Materials // REGNUM News Agency. 18 May 2013.

  6. Jakobson L., Seong-Hyon Lee. The North East Asian States’ Interests in the Arctic and Possible Cooperation with theKindom of Denmark // SIPRI, Copenhagen, April 2013, p. 33.

  7. Arctic Policy of the Republic of Korea // Arctic Portal Library.URL: http://www.library.arcticportal.org/1902/1/Arctic_Policy_of_the_Republic_of_Korea.pdf.\

  8. South Korea’s DSME to Build Tankers for Yamal LNG // OilCapital.ru. 4 July 2013.URL: http://www.oilcapital.ru/transport/213196.html

  9. 114 South Korea Paving Sea Route to Arctic // REGNUM. 14 March 2015. URL: http://www.regnum.ru/news/polit/1905228.html

  10. Russian International Affairs Council // Ivanov, RAS Corresponding Member, Dr. of History sian Players in the Arctic: Interests, Opportunities, Prospects: Report No. 26/2016 / [

List of diagrams/figures



  1. Diagram 1: The Design of South Korea’s Master plan ….page :22

  2. Diagram 2: Russia’s Sea Route Map……………………..page : 29

  3. Diagram 3: The Arctic Ice is melting…………………….page :31

  4. Figure 1: Arctic Transit ………………………………..page : 33



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