The shipbuilding industry on Geoje Island is roaring back to life. (Image courtesy of Samsung Heavy Industries)
SEOUL, March 21 (Korea Bizwire) — After a decade of struggle, the shipbuilding industry on Geoje Island is roaring back to life, with Hanwha Ocean and Samsung Heavy Industries both surpassing 10,000 employees each and offering substantially higher wages amid a global shipping boom.
According to business reports released on March 19, Hanwha Ocean and Samsung Heavy Industries now employ 10,202 and 10,112 workers, respectively. Including subcontractors, the total workforce reaches nearly 31,000 for Hanwha Ocean and 29,000 for Samsung Heavy Industries, with most workers based at their sprawling Geoje shipyards.
This marks a dramatic turnaround from the industry’s nadir in 2022, when both companies had slashed their workforces to about 8,700 employees each following years of losses. Hanwha Ocean reported losses of 1.31 trillion won in 2021, while Samsung Heavy Industries lost 1.75 trillion won that same year.
The revival has brought substantial wage increases, with average annual compensation rising by about 22 million won over three years. Hanwha Ocean’s employees now earn an average of 89 million won annually, up 32.8% from 2021, while Samsung Heavy Industries workers receive 94 million won, a 25.3% increase.
“The economic impact is visible throughout Geoje as employment and wages rise at both shipyards,” said an industry official who spoke on condition of anonymity because they were not authorized to speak publicly.
The surge reflects a broader recovery in global shipbuilding. Both companies have secured order backlogs worth over 30 trillion won each — enough work to keep their yards busy for more than three years. Hanwha Ocean returned to profitability in 2024 with an operating profit of 237.9 billion won, while Samsung Heavy Industries posted profits of 502.7 billion won.
The momentum shows no signs of slowing. On March 18, both companies won major contracts, beating Chinese competitors to secure orders worth 4.3 trillion won for container ships and shuttle tankers.
The industry’s prospects are further brightened by potential new opportunities in the United States and India, both of which are seeking South Korean expertise to develop their domestic shipbuilding capabilities. U.S. President Donald Trump’s consideration of port fees for Chinese-built or Chinese-flagged vessels could provide additional advantages for South Korean shipbuilders.
Hanwha Group, which owns Hanwha Ocean, is expanding its global footprint, having acquired the Philly Shipyard in Philadelphia last year and now pursuing the acquisition of Australian shipbuilder Austal, which operates facilities in Alabama. The company has increased its facility investment budget from 249.3 billion won in 2024 to 1.03 trillion won this year.
Meanwhile, Samsung Heavy Industries aims to secure one or two offshore plant projects this year, each potentially worth about 2 trillion won. The company has already built five of the world’s nine floating LNG production and storage facilities, and anticipates an order for Mozambique’s Coral Sul FLNG 2 project.
M. H. Lee (mhlee@koreabizwire.com)
