Hanwha Ocean, a leading Korean shipbuilding and offshore company, announced on Wednesday plans to invest 1.97 trillion won ($1.49 billion) over the next three years to improve safety at its shipyard facilities.

"After a thorough review of safety feedback from both internal and external experts, as well as the overall safety conditions at our shipyards, we have determined that a comprehensive overhaul of our current safety management system is needed," said Kim Hee-cheul, CEO of Hanwha Ocean, in a statement.

Kim added that the company would mobilize all available resources and collaborate closely with safety agencies and experts to enhance its safety practices.

The initiative includes 1.13 trillion won for the three-year regular safety budget, which will increase each year in phases, starting from 350 billion won this year to 380 billion won for 2025 and 400 billion won for 2026.

Some 846 billion won will be funneled to new investments to beef up safety at its facilities through 2026. The new investment budget has been allocated to six key areas: implementing smart safety systems, replacing outdated equipment, fostering an advanced safety culture, creating an experiential safety academy, providing safety support for suppliers, and conducting regular evaluations by external safety agencies.

Hanwha Ocean plans to invest 65 billion won by 2026 in a smart safety system that uses artificial intelligence to automatically detect hazardous conditions such as fires, explosions, and leaks across its shipyards. The company will also provide personnel with advanced personal safety devices, including body cameras, tablets and smartwatches.

An additional 700 billion won will be used to replace outdated equipment. Hanwha Ocean will proactively replace any equipment identified as a potential safety risk, regardless of its condition.

The company is also working with global safety consulting firms to implement a safety program, with plans to finalize the selection by year-end. Hanwha Ocean will invest 9 billion won over three years for this program.

A total of 50 billion won will be invested in a safety academy providing hands-on training, while 15 billion won will be allocated to enhancing safety for partner companies, aimed at increasing safety personnel and experts.

In addition, Hanwha Ocean will spend 7 billion won to outsource regular safety evaluations to external agencies, and the company will also implement 23 strategic tasks recommended by the Norwegian safety management company DNV to achieve the highest international safety certification standards.