South Korea’s Shipbuilding Industry Starts 2025 With Strong Momentum

South Korea’s shipbuilding industry has begun 2025 on a high note, with significant developments from key players like HD Hyundai Samho, HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean. These early successes highlight the industry’s robust outlook for the year.

Key Highlights

1. First Export of the Year:
   • HD Hyundai Samho delivered an LNG carrier to a shipowner, marking its first export of 2025.
   • On January 7, HD Hyundai Heavy Industries and HD Hyundai Mipo also delivered completed container ships, showcasing early productivity.
2. Major Contracts Signed:
   • Samsung Heavy Industries secured a 380 billion won contract to build an LNG carrier.
   • HD Hyundai Heavy Industries signed a Letter of Intent (LOI) with CMA CGM, the world’s third-largest shipping company, to build 12 LNG dual-fuel container ships (15,500 TEU). This contract, valued at approximately 3.9 trillion won, is HD Hyundai’s first order for 2025.
3. Rising Prices Reflect Demand:
   • The estimated price per container ship is $224 million, slightly higher than $222 million in last year’s CMA CGM order, driven by increased demand for eco-friendly vessels in compliance with IMO’s “net zero” regulations.

Industry Outlook for 2025

1. Growing Market Share and Revenue:
   • The three major domestic shipbuilders (HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean) are projected to secure over $50 billion in orders, a 30% increase compared to 2024.
   • Increased demand for LNG carriers and methanol-fueled ships is expected as the IMO intensifies decarbonization efforts.
2. Profitability and Performance:
   • HD Korea Shipbuilding & Offshore Engineering: Operating profit expected to reach 2.4752 trillion won in 2025.
   • Samsung Heavy Industries: Anticipated profit increase from 475.4 billion won to 778.4 billion won.
   • Hanwha Ocean: Expected rise in profit from 170.5 billion won to 575.4 billion won.
3. Competitive Advantage Over China:
   • With an improved labor situation and cleared backlog, Korean shipbuilders are positioned to attract more orders through shorter delivery schedules.
   • While China holds a larger market share, South Korea’s focus on high-value, eco-friendly vessels is expected to narrow the gap.

Expert Insights

• A shipbuilding industry official noted, “This year will be significant for Korean shipbuilders in catching up with China and improving profitability.”
• The industry’s selective order strategy is transitioning to broader competitiveness as shipowners prioritize sustainable solutions.

With strong early performance, improved operational efficiencies, and alignment with global decarbonization goals, South Korea’s shipbuilding industry is poised for a breakthrough year in 2025.