Korean Media: The South Korean Shipbuilding Industry, Though Appearing Prosperous on the Surface, Has Been Left Far Behind by China!
On April 29, South Korean media outlet *Herald Economic* published an article stating that analysis reveals while the South Korean shipbuilding industry appears to be showing signs of recovery on the surface, its overall strength is actually weakening. As small and medium-sized shipyards and equipment suppliers—the foundational industries in Korea—rapidly decline, China is taking control of the entire market.
Last year, the combined revenue of South Korea’s three major shipbuilders—Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries—exceeded 53 trillion KRW. Operating profits saw a significant increase compared to the previous year, and backlogs amounted to workloads equivalent to three years. On the surface, it seems South Korea's shipbuilding industry has entered a clear phase of recovery.
However, deeper analysis reveals otherwise. Unlike large shipyards, small and medium-sized shipyards and marine equipment suppliers are struggling due to insufficient orders and declining competitiveness. The regional division of labor and industrial ecosystem that once characterized the sector are also rapidly deteriorating.
Changes in the supply chain are equally evident. In recent years, South Korea’s trade deficit with China in key shipbuilding equipment has significantly widened. The number of domestic shipyards in South Korea has decreased, while China now hosts over 200 shipyards. China also leads globally in market share for new orders, further widening the gap. Analysts point out that South Korea continues to focus on high-value-added vessels, whereas China expands the entire market by promoting various types of ships.
China’s competitive edge is clearly visible across its entire industrial structure. In critical indicators such as shipbuilding volume, new order volume, and backlog volume, China ranks first worldwide. Moreover, in recent years, the vast majority of new orders have flowed toward China. Establishing an integrated system covering shipyards, design, equipment, and financing is considered a key advantage.
Large-scale facility expansions and the introduction of smart shipyards are advancing rapidly. While South Korea focuses on clearing backlog orders, China is effectively enhancing its long-term competitiveness.
Experts recommend treating the shipbuilding industry as a comprehensive sector integrating shipping, finance, defense, and other fields. They emphasize that restoring competitiveness will be extremely difficult without establishing a system encompassing the entire industry. A South Korean industry insider stated: “To successfully apply artificial intelligence and automated equipment in shipbuilding, we must accumulate data-driven expertise through skilled personnel, and build a system where main contractors and subcontractors can jointly utilize this information.”
Original source: toutiao.com/article/1863806701461962/
Disclaimer: This article represents the personal views of the author.