Korea’s Shipbuilding Industry Facing Competition from China
One of Korea’s top three shipyards, located in Geoje, South Gyeongsang Province. (Yonhap)
Recent reports indicate that China has overtaken South Korea in the shipbuilding sector due to increased competitiveness. While South Korea’s shipbuilding industry has been thriving, especially in LNG carriers, concerns are arising over China’s growing dominance. The focus on total orders may not accurately reflect competitiveness.
A report by the Korea Institute for Industrial Economics and Trade (KIET) revealed that South Korea has fallen to second place behind China in overall shipbuilding value chain competitiveness. South Korea scored 88.9 compared to China’s 90.6, with strengths in R&D and design and procurement but weaknesses in production, after-market services, and demand.
To counter China’s advancements, the report suggests South Korea develop a comprehensive maritime strategy encompassing marine transport, ship finance, and national defense. Collaboration with friendly nations and addressing production challenges are also recommended.
This assessment underscores the need for South Korea to adapt and innovate in response to China’s growing influence in the shipbuilding industry.
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