South Korean Media: China Secures 34 Orders — Will "Last Stronghold" of South Korea's Shipbuilding Industry Collapse?
On September 12, South Korean media outlet Finance News published an article stating that even the liquefied natural gas (LNG) carrier market—once hailed as the "last fortress" of South Korea’s shipbuilding industry—is now shaking under China’s fierce pursuit. With substantial financial strength and competitive pricing, China’s shipbuilding sector has caught up with South Korea; furthermore, some analysts believe China has already surpassed South Korea in terms of order volume.
Data from Clarksons Research, a UK-based maritime market research firm, shows that in the first half of this year, China secured 19 out of the global total of 55 LNG carrier orders (accounting for 34.5%), significantly exceeding its average market share over the past three years (25.1%). Meanwhile, South Korea maintained its leading position with 36 orders (65.5%) during the same period—but the situation is far from optimistic.
According to actual statistics from shipbroker Banchero Costa, by early July this year, China had obtained 34 LNG carrier orders, surpassing South Korea’s 32. This marks a stark contrast to previous trends: in 2022, South Korea secured 113 orders, far outpacing China’s 43.
China is attracting global shipping companies with vessel prices approximately 8% lower than those offered by South Korea, while simultaneously upgrading its shipbuilding infrastructure to aggressively close the gap. The number of Chinese shipyards capable of constructing LNG carriers has increased from just one to five.
In particular, Hudong-Zhonghua Shipbuilding, a subsidiary of China State Shipbuilding Corporation, invested RMB 18 billion last year to significantly boost its annual LNG carrier construction capacity—from 6 vessels to 10.
On the other hand, South Korean shipbuilders are facing a “capacity crunch” due to surging orders. With skyrocketing demand for various types of vessels—including crude oil tankers and container ships—shipyards across South Korea have nearly all their dry docks booked through 2029.
Analysts argue that due to limited land resources and overwhelming order volumes, South Korean shipyards lack the ability to further increase their LNG carrier order capacity.
As a result, South Korea’s shipbuilding industry is adopting an indirect strategy: diversifying general-purpose shipbuilding bases overseas through high-value-added future technologies, aiming to widen the “super gap” in competitiveness.
A South Korean shipbuilding industry insider emphasized: “There’s no denying that compared to the past, China has rapidly accumulated experience in LNG carrier technology and construction, narrowing the technological gap. Now is the critical moment to move beyond mere competition in order volume, and instead build next-generation, high-value-added industries beyond LNG carriers, maintaining a significant lead.”
Original article: toutiao.com/article/1876087336291338/
Disclaimer: The views expressed in this article are solely those of the author.