At Veson Nautical’s recent South Korea Forum in Seoul, I had the honor of moderating a panel discussion on how carbon regulation is reshaping fleet strategies and ship asset valuations. The conversation featured two of South Korea’s foremost maritime leaders: Mr. Sung Ick Kim, CEO and President of SK Shipping, and Mr. Jay Lee, Head of Chartering at Hardy Corporation. What emerged was a compelling exploration of how our industry is adapting to an era defined by volatility and innovation. 

Fleet renewal in an age of uncertainty 

Mr. Kim opened the discussion with a powerful reminder: “In shipping, two words define everything—uncertainty and change.” 

He spoke to the rapidly evolving global landscape—U.S. trade policies, geopolitical tensions—and how this unpredictability complicates strategic decisions. In response, SK Shipping is reshaping its fleet by divesting older LNG and oil tankers and focusing more on vessels aligned with clean energy transport. 

“We’re actively restructuring to focus on LNG, LPG, and tankers,” he told the audience. “And looking ahead, we’re exploring hydrogen and ammonia carriers. But when it comes to alternative fuels, the uncertainty is overwhelming. What will actually gain adoption? That’s the question everyone is still asking.” 

Mr. Kim also emphasized a “second mover” approach. Having experienced setbacks as early adopters of KC1 systems, SK Shipping is now waiting for technologies to mature before making significant investments. “We’ve learned that it’s often wiser to follow proven technologies,” he noted. 

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Questioning the LNG assumption 

Jay Lee brought a critical lens to the fuel discussion by urging caution around LNG’s environmental credentials. “LNG may seem cleaner, but when you consider its full life cycle – from extraction to combustion – it’s far from perfect,” he explained. “Methane slip is a serious issue, and we lack complete emissions data.” 

Rather than committing to one pathway, Hardy is taking a flexible, strategic approach. “The industry must avoid blind adoption,” Jay said. “We should wait for truly viable alternatives that are both commercially and environmentally sustainable.” 

Partnerships and technology adoption: Proven > promising 

Both panelists agreed that technology needs to be practical, measurable, and supported by partnerships. 

Mr. Kim shared how SK Shipping is collaborating with Korean shipbuilders and maritime tech companies to develop autonomous navigation systems and energy-saving solutions. He highlighted a recent trial on an LNG carrier where a vision-based autonomous system delivered 3–5% fuel savings. 

Jay, speaking about Hardy’s own digital transition, pointed to the company’s adoption of the Veson IMOS Platform. “Without challenges, nothing changes,” he said. “We invested in IMOS to integrate chartering, finance, and carbon management. It’s changed the way we work—what used to feel like driving a Porsche now feels like flying a jet.” 

The two-tier market is already here 

We also explored the emerging divide in vessel valuations. Mr. Kim was direct: “There’s a clear two-tier market. Charterers are favoring modern, more efficient vessels—especially in Europe. That preference is driving newbuild prices and pulling up secondhand values.” 

Jay concurred: “Modern vessels not only save fuel but also attract premiums. They’re reshaping market dynamics—and owners know it. That’s why they’re holding onto them longer.” 

Data, AI, and the digital maturity gap 

While Hardy is leveraging platforms like Shipfix, Veson IMOS, and VesselsValue to make data-driven decisions, SK Shipping is facing a different reality. “Our IT system was built in 2004,” Mr. Kim admitted. “It’s outdated and not designed to interface with new AI or sensing technologies. Updating and integrating systems is our biggest hurdle right now.” 

I underscored the importance of smart integration—not just for better operational visibility, but also for managing the growing complexity of carbon compliance, cyber risk, and geopolitical volatility. 

Global trade shifts and their local impact 

As the conversation shifted to trade policy, Mr. Kim explained that tariffs have limited direct impact on SK Shipping, but container lines and car carriers in Korea are under increasing pressure to alter routes and avoid Chinese tonnage. 

Jay raised the collapse of the double taxation agreement between South Korea and Russia as a recent challenge. “We had to absorb additional costs while trying to stay competitive against countries still benefiting from such agreements,” he explained. 

What comes next? A call for flexibility and focus 

Looking ahead, Mr. Kim expressed optimism around autonomous navigation, particularly in addressing labor shortages in shipbuilding and seafaring. “Autonomous systems are not just about innovation—they’re about solving real workforce problems in Korea’s maritime industry,” he said. 

Jay wrapped up with a powerful message: “Technology is essential, but it’s not a silver bullet. Our industry is under enormous pressure to reduce emissions, and we need to act. That means being flexible, proactive, and always looking ahead.” 

Conclusion: The future is a team effort 

As I reflected during the session, carbon regulations are no longer just compliance issues—they’re redefining how we invest, operate, and value our assets. Navigating that future will require not just technology, but strong partnerships and a willingness to evolve. 

In a world where the pace of change is measured in hours, not months, the South Korea Forum made one thing abundantly clear: the maritime leaders shaping the future will be those who collaborate, adapt, and act. 

Looking for more opportunities to engage with Veson and your global industry peers? Join us for ONCOURSE 2025, happening this June in Boston.