SEOUL, December 28 (AJP) - South Korean shipbuilders have successfully defended their order books this year, regaining a 20 percent global market share despite a sharp downturn in worldwide vessel orders, industry data showed Sunday.
South Korea currently stands as one of the world's two dominant shipbuilding nations, locked in a fierce rivalry with China. While China often leads in sheer volume, South Korea has carved out a stronghold in the market for high-value, high-technology vessels, particularly liquefied natural gas (LNG) carriers and eco-friendly ships.
The sector is anchored by three major conglomerates often referred to as the "Big Three" -- HD Hyundai, Hanwha Ocean, and Samsung Heavy Industries. After years of competing for volume, these companies have recently shifted strategies to prioritize profitability, engaging in "selective order taking" to fill their docks with premium contracts rather than low-margin bulk carriers.
According to Clarkson Research, a British shipbuilding and shipping market analysis firm, cumulative global orders from January to November this year totaled 44.9 million Compensated Gross Tonnage (CGT), or 1,627 vessels. This represents a 37 percent decrease compared to the same period last year.
Despite the shrinking global pie, South Korea secured 10.0 million CGT (223 vessels), capturing a 22 percent market share.
While this volume represents a 5 percent decline from the previous year, industry analysts view it as a strong performance given that rival China saw its orders plummet by 47 percent to 26.6 million CGT over the same period.
The result marks a significant recovery for South Korea, whose market share had fallen to the 10 percent range last year, specifically 17 percent, the lowest level since 2016. The industry appears poised to finish the year comfortably back in the 20 percent range.
The "Big Three" shipbuilders have posted solid results, aided in part by geopolitical factors. Industry observers note that the United States' measures to contain the Chinese shipbuilding industry have prompted some international shipowners to redirect orders to South Korean yards.
Specifically, following a Section 301 investigation initiated in 2024, the U.S. Trade Representative has moved to impose fees on Chinese-built vessels, creating uncertainty that has benefited Korean competitors.
HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company for HD Hyundai's shipbuilding units, has secured $18.2 billion in orders (129 vessels) so far this year. This achieves 100.6 percent of its annual target of $18.1 billion, marking the fifth consecutive year the company has exceeded its goals.
Although HD KSOE's total order value decreased by 13 percent compared to last year's $20.9 billion, the industry attributes this to the company's "selective order" strategy, as its construction docks are already fully booked for several years.
Hanwha Ocean has secured $9.8 billion in orders to date, surpassing its total performance from last year ($9.0 billion). Its portfolio includes high-value contracts for 20 Very Large Crude Carriers (VLCCs) and 13 LNG carriers.
Samsung Heavy Industries has won orders totaling $7.4 billion this year, including 9 LNG carriers, 9 shuttle tankers, 9 container ships, 2 ethane carriers, and 11 crude oil tankers. While this figure represents only 76 percent of its annual target of $9.8 billion, industry officials remain optimistic, noting that additional contracts for offshore plants are expected soon.
reporter
Park Sae-jin
swatchsjp@ajunews.com
Copyright ⓒ Aju Press All rights reserved.
