Page 58: of Maritime Reporter Magazine (December 2015)

COUNTRY REPORT: SOUTH KOREA

Maritime Korea finds its place in the Sun

Photo: DSME

By Joseph R. Fonseca he development of the cluster which created a total value of more than Offshore & Shipbuilding, Hyndai Mipo group which entered Azerbaijan ship- in South Korea’s large water $462 billion, and hence, the shipbuild- Dockyard, SLS Shipbuilding, and Dae building industry and Samsung Heavy area and over 2,413 km (1,508 ing industry has become the nation’s Sun Shipbuilding & Engineering. Industries (SHI) that acquired stakes

Tmiles) long coastline has to number one export industry representing While many smaller shipbuilders had from shipbuilders in Brazil and other a large extent been responsible for the more than 15% of its total exports. But joined the Korea Shipbuilding Industry countries in Latin America.

country’s rise to prominence as a major then there was a paradigm shift. In 2014, cooperative, almost all of the major and Shipping and port industry too play marine power. Today, South Korea ranks out of the global new orders of 41 mil- medium-to-large companies joined KO- as vital a role in the nation’s economy high in the world in terms of shipbuild- lion CGT that were placed, Korean ship SHIPA. South Korea has been actively as shipbuilding does mainly because al- ing industries, shipping and ports. builders succeeded in claiming 29.8 % cooperating with international players most all of the country’s imports and ex-

Over the past few decades, shipbuild- leaving the top place to the Chinese who in the maritime industry which has re- ports are transported by sea. ing contributed signi? cantly towards claimed 38.8% orders. sulted in providing more opportunities The size of the shipping companies’

South Korea’s economic development. There are nine shipbuilders who domi- for the nation to maintain its competitive ? eet is well developed. Even though

From the late 1970s to the 90s, it did nate the South Korean ship building sce- advantage and to improve its industrial the maritime industry leverages its high remarkably well with its low-cost ship- nario according to Korea’s Offshore & structure. quality labor force and technological su- building propelling it to sail past Japan Shipbuilding Association (KOSHIPA), a South Korean shipbuilders have ex- premacy, the operating costs have con- to gain the top rank in the world in 1993 non-pro? t organization established in the panded to different regions of the world. tinued to spiral due to higher fuel and in terms of its new shipbuilding orders late ‘70s when South Korea embarked on Among the subsidiaries abroad, STX’s labor costs. with a share of nearly 38% of the world its task of developing its shipbuilding in- shipyard in Dalian, China, Hanjin’s South Korea’s Hanjin Shipping and market. South Korea eventually became dustry. They are Hyundai Heavy Indus- Subic Shipyard in the Philippines, Dae- Hyundai Merchant Marine (HMM) fea- the world’s dominant shipbuilder with a tries, Daewoo Shipbuilding & Marine woo’s Mangalia Shipyard in Romania ture in the list of top 20 leading container 50.6% share of the global shipbuilding Engineering, Samsung Heavy Industries, and Hyundai’s Vinashin Shipyard in shipping operators in the world whereas, market as of 2008. In 2011, South Ko- Hyndai Samho Heavy Industries, Hanjin Vietnam are doing exceptionally well. the next two operators, STX Pan Ocean rea built 13 million gross tons of ships Heavy Industries & Construction, STX Other forays abroad included the STX and Korea Lines Corporation (KLC) 58 Maritime Reporter & Engineering News • DECEMBER 2015

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