Nikkei News: US-South Korea Shipbuilding Alliance Challenges China's Share, South Korean Shipbuilders' Market Share Rises to 20%

Nikkei News reported on July 4 that the largest South Korean shipbuilding group, HD Hyundai, signed a strategic agreement with Edison Chouest Offshore (ECO) of the United States on June 20 to build medium-sized LNG dual-fuel container ships in the United States. The goal is to deliver them by 2028. This agreement marks the entry of the US-South Korea shipbuilding industry alliance into the substantive phase, and the two sides will expand their cooperation in high-value-added ship types such as icebreakers and warships.

This action is based on the consensus reached during the high-level talks between the United States and South Korea in February 2025. Both countries established an interdepartmental working group, expanding the scope of cooperation from military vessels to civilian high-value-added ship types such as LNG carriers and Arctic icebreakers.

South Korean shipyards are becoming winners in the geopolitical upheaval. According to data from Allied Shipbroking, South Korean shipyards' market share rose from 11% in the first four months of 2025 to 20%, while China maintained a 59% share but slightly decreased from 61% last year.

The order flow of Greek shipowners highlights this shifting trend - 63% of their orders went to Chinese shipyards in 2024, while 66% of their orders shifted to South Korean shipyards in 2025.

"South Korean shipyards are enjoying the dual benefits of rising profits and strong stock market performance," said Chara Georgousi, head of valuation at Allied Shipbroking. "Shipowners who are more risk-averse are gradually turning their attention to South Korean shipyards, forming a structural shift." An HD Hyundai representative emphasized, "The United States is our strong ally and an important business partner. Through cooperation with ECO, the company aims to actively support the revitalization of the US shipbuilding industry."

Facing the request from US Commerce Secretary Howard Lutnick to "adjust delivery cycles," South Korea used the "shipbuilding card" as a negotiation tactic, proposing that any ship tariffs on South Korea should be better than those of other countries, in exchange for the exemption of US steel and aluminum tariffs.

Original article: https://www.toutiao.com/article/1836665780831241/

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