• Six of 11 Korean shipping companies publish net-zero roadmaps; none report alternative fuel use.  

• Despite publishing emissions targets, Korean shipping companies lag in retrofitting ships and adopting alternative fuels, raising regulatory and financial risks. 

November 10, 2025 (SEOUL) - South Korea’s top shipping companies outperform the global average in disclosing greenhouse gas (GHG) reduction strategies but lag far behind peers in investing in green ships and fleet transition plans, according to a new report by Solutions for Our Climate (SFOC). 

The report, “Global Top 100 Shipping Companies by Environmental Performance (2025): Is Korea’s Shipping Ready for the Net-Zero Era?”, found that while 6 of 11 Korean shipping companies have published GHG reduction roadmaps – outpacing China (1 of 12) and Japan (3 of 8) – they scored below the global average in disclosing investment activities and transition plans. All Korean companies trail against global competitors in reporting fossil fuel use, aging vessel replacement schedules, or dual-fuel retrofits. Notably, Pan Ocean stands as the only company to disclose the share of fossil-fuel-powered vessels and energy consumption, while none have reported their use of non-fossil fuel. 

According to the report, this lack of disclosure stems from underdeveloped investment plans or ongoing investments withheld from public reporting amid cost and competition concerns. 

Either way, experts warn the opacity could hinder Korea’s competitiveness under the IMO’s Net-Zero Framework, approved at MEPC 83 in April 2025, which introduces differential carbon pricing based on GHG fuel intensity. Although implementation has been postponed by one year, the 2050 net-zero target remains unchanged, and delaying action will only make the transition more costly as compliance expenses, fuel levies, and operational restrictions rise. 

CII Grades: Korea in the middle of the pack 

Using the Carbon Intensity Indicator (CII) – an IMO metric introduced in 2023 to measure vessel-level emissions efficiency – the report placed Korea 8th out of 15 countries, above the East Asian average but mid-tier globally. 

Among Korea’s major players, three companies stand out for market presence and climate disclosures; but also illustrate the country’s mixed performance. 

• HMM, ranked 9th globally among container operators, has disclosed net-zero targets and Scope 3 emissions. However, its 2024 CII ratings show a sharp drop in Grade A vessels and a rise in Grade C, pointing to declining fleet efficiency despite strong ESG reporting. 

• Hyundai Glovis improved fleet efficiency from 2023 to 2024 and began Scope 3 reporting in 2024. Still, its net-zero strategy remains narrowly focused on LNG carriers, with no published roadmap for transitioning to alternative fuels. 

• Pan Ocean has detailed its GHG strategy in reports, but more than 25% of its fleet is rated Grade D or below, with none at Grade A. With tighter IMO standards coming in 2026, the company must scale up retrofits and clarify its investment plans. 

A critical window for Korea’s shipping transition 

Korea’s shipping industry now faces a dual challenge of transparency and investment. Companies must either ramp up transition investments or disclose progress more openly. 

Although the IMO has delayed finalizing its mid-term measures until next year, the 2050 net-zero target remains intact, and regional measures such as the EU ETS and FuelEU Maritime are already being implemented, signaling that inaction now will only heighten future costs. 

The report cautions that relying on regulatory delays will only raise transition costs and market-access risks, eroding Korea’s competitiveness. While continued fossil fuel use may seem economical in the short term, mounting levies, procurement costs, and operational limits during a delayed transition will outweigh temporary gains. 

“A delay in adopting the IMO mid-term measure is no excuse to slow down. Korea’s shipping industry should use this one-year grace period to immediately implement an action plan that spans short-term measures such as CII, EEXI, and voyage optimization, as well as the longer-term strategy of fuel transition, to proactively reduce cost and market risks,” said Jueun Han, researcher at SFOC.  

 ENDS.

Solutions for Our Climate (SFOC) is an independent nonprofit organization that works to accelerate global greenhouse gas emissions reduction and energy transition. SFOC leverages research, litigation, community organizing, and strategic communications to deliver practical climate solutions and build movements for change.        

For media inquiries, please reach out to Antonette Tagnipez, Communications Officer, at antonette.tagnipez@forourclimate.org.