Korean Media: Japan Lowers Its Dignity, 'Korea, Teach Us Technology!'

On July 15, the Korean media outlet Korea Economic Daily published an article stating that Japan is seeking technological cooperation with South Korea's shipbuilding industry to revive its LNG carrier sector. Once the world's most powerful shipbuilding nation, Japan is now proactively turning to South Korean enterprises for assistance in rebuilding its LNG carrier industry. This is seen as a symbolic example indicating that the positions of the South Korean and Japanese shipbuilding industries have reversed for the first time in 40 years.

According to Nikkei News, Japan’s government-proposed public-private investment roadmap includes a plan to resume domestic construction of LNG carriers. It is reported that, to achieve this goal, Japan will seek relevant technological collaboration from South Korean shipbuilders.

Japan had set a target to begin building 3 to 5 LNG carriers annually starting from 2035, with companies such as Imabari Shipbuilding, Kawasaki Heavy Industries, and Nagasaki Shipbuilding serving as core players. However, after delivering its last LNG carrier in 2019, Japan has effectively ceased building such vessels.

Industry experts believe this marks a complete transformation in South Korea’s shipbuilding status. Previously, the development of South Korea’s shipbuilding industry had always been geared toward catching up with Japan. In the 1970s, the South Korean government implemented policies promoting heavy industry and chemical industries—this became a turning point for the country’s shipbuilding sector. At the time, South Korean shipyards enhanced their competitiveness by benchmarking against Japanese shipbuilding methods and operational systems, as Japanese yards were the undisputed global leaders in shipbuilding. Major shipyards like Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering emerged one after another, striving to catch up with Japan and began fierce global competition from the 1990s onward.

Due to the strengthening of the yen and high cost structures, Japan’s shipbuilding industry lost price competitiveness, while also lagging behind in industrial restructuring, gradually losing its edge. Meanwhile, South Korean shipbuilders expanded their technological gap with Japan by focusing on research and production of high-value-added vessels such as ultra-large container ships and LNG carriers. By the 2000s, South Korea had already taken a leading position in the global market.

The most significant area of divergence between the two nations lies in LNG carriers. LNG carriers are high-value-added vessels used to store and transport liquefied natural gas at temperatures as low as minus 163 degrees Celsius. It is estimated that South Korea accounts for about 70% of the global LNG carrier market, while China holds approximately 30%. Although China is rapidly catching up, South Korea still maintains an advantage in construction experience, quality, and delivery competitiveness in LNG carriers.

Notably, Japan lacks the technology to manufacture membrane-type cargo tanks—the dominant technology in global LNG carriers. Membrane-type tanks integrate rectangular cargo holds directly into the hull structure. While offering higher storage efficiency and excellent transportation economics, they also present significantly greater technical challenges.

Nikkei News reports that “the Japanese government and three shipbuilding companies are planning to collaborate with South Korean shipbuilders who possess membrane tank manufacturing technology, aiming to restore LNG carrier construction. They are considering acquiring technology transfer from major South Korean shipbuilding firms.”

Economic security is the driving force behind Japan’s effort to rebuild its liquefied natural gas carrier industry. About 98% of Japan’s LNG demand relies on imports, used primarily as fuel for power generation and urban gas supply. Due to its island geography, the country is forced to depend on maritime transport rather than pipeline networks, making LNG carriers directly linked to national energy security.

However, Japan’s domestic shipbuilding capacity has nearly vanished. Currently, around 100 vessels transport imported LNG into Japan. The government believes that, considering the vessel replacement cycle, if Japan can steadily build about five LNG carriers annually, it could maintain a minimum level of energy supply even during crises.

Original source: toutiao.com/article/1870782761834504/

Disclaimer: The views expressed in this article are those of the author(s) alone.