Hanwha Ocean Co.’s shipyard in Geoje, about 330 kilometers southeast of Seoul, is seen in this photo provided by the company. (Image courtesy of Yonhap)
SEOUL, Dec. 16 (Korea Bizwire) – South Korea’s share of global shipbuilding orders in 2024 is expected to hit its lowest point since 2016, highlighting growing concerns over its competitiveness in the face of China’s dominance.
Despite strong profits from high-value ship orders, experts warn that maintaining a basic level of order volume is essential to sustaining the country’s shipbuilding leadership.
China Widens the Gap
According to UK-based shipping analytics firm Clarkson Research, 6,033 million compensated gross tons (CGT) of new ship orders were placed globally from January to November 2024.
Of these, South Korea secured just 1,092 million CGT (248 vessels), representing 18% of the global total. Meanwhile, China captured 69%, with 4,177 million CGT (1,518 vessels), quadrupling South Korea’s order volume.
This marks South Korea’s global share dropping below 20%, the first time since 2016, when its share fell to 15.5% amid a global shipbuilding downturn. The gap in order volume between China and South Korea has now reached a record-high 3,085 million CGT.
‘I am well aware of Korea’s world-class warships and shipbuilding capabilities,’ Trump said, adding, ’We need to work closely with Korea not only in exporting our ships but also in refurbishing, repairing and overhauling them.’ Pictured is the HD Hyundai Heavy Industries shipyard.
Balancing Quality and Quantity
South Korean shipbuilders have focused on selective, high-value orders due to their shipyards being at full capacity with a backlog of construction projects spanning over three years.
However, industry experts caution that failing to secure sufficient order volume could undermine long-term competitiveness, especially during a “big cycle” of heightened global demand for shipbuilding.
Despite this, the country’s “Big Three” shipbuilders—HD Korea Shipbuilding & Offshore Engineering (HD Hyundai), Samsung Heavy Industries, and Hanwha Ocean—posted robust results in 2024.
HD Korea Shipbuilding achieved $20.56 billion in orders, exceeding its annual target by 152%. Samsung Heavy Industries and Hanwha Ocean secured $6.8 billion and $8.15 billion, respectively, focusing on high-value ships.
The Path Forward
To counter China’s aggressive expansion, experts emphasize the need to bolster small- and mid-sized shipyards to increase production capacity and maintain a competitive edge. “While South Korea’s current backlog of orders is reassuring, the significant gap in volume compared to China is a troubling sign,” said an industry official. “To remain the global leader in shipbuilding, South Korea must ensure it secures a steady flow of orders.”
As China consolidates its dominance in the industry, South Korea faces mounting pressure to strike a balance between quality-focused strategies and securing sufficient order volumes to sustain its position as a global shipbuilding powerhouse.
This photo, taken on July 20, 2022, shows the Okpo shipyard of Daewoo Shipbuilding and Marine Engineering Co. in Geoje, South Gyeongsang Province, southeastern South Korea. (Yonhap)
Ashley Song (ashley@koreabizwire.com)
