Orders for Korea’s three major shipbuilders are expected to increase by nearly 30% this year compared to last year. While global ship orders are anticipated to decline, the expansion in order volume is expected due to the shipbuilders’ competitiveness in high-value vessel types such as liquefied natural gas (LNG) carriers. With LNG carriers and other vessels ordered 3-4 years ago beginning deliveries, this year’s profits are projected to surpass 10 trillion won.

According to industry insiders on Jan. 6, Korea’s three major shipbuilders — HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries — are expected to achieve $46.4 billion in new orders this year. This represents a 27% increase from the three shipbuilders’ order amount of $36.3 billion last year, significantly exceeding the previous peak of $44 billion in 2022.
0 of these vessels will go to Korean shipbuilders. LNG carriers, being high-value-added vessel types, have high entry barriers due to their ultra-low temperature cargo hold technology and high construction difficulty.

While Korea’s shipbuilding industry has ceded the container ship and bulk carrier markets to China, it monopolizes the LNG carrier market based on long construction experience and stable delivery schedules and quality. From 2021 to 2025, Korean shipbuilders delivered a total of 248 vessels while China delivered only 48, with Korea holding an 83.8% market share.

HD Korea Shipbuilding & Offshore Engineering fired the starting gun for this year’s orders on Jan. 6 by securing orders for four LNG carriers worth 1.499 trillion won. Through this contract with an American shipping company, HD Hyundai Heavy Industries plans to deliver the vessels by the first half of 2029, equipped with the latest specifications, including high-efficiency shaft generators and LNG reliquefaction systems to enhance operational efficiency.

The likelihood of continued earnings growth this year is significant. This is because LNG vessels ordered by domestic shipbuilders in 2022-2023 are beginning full-scale deliveries. LNG carriers are typically built and delivered over 2-3 years, and during that period, HD Korea Shipbuilding & Offshore Engineering received orders for 83 LNG carriers, while Hanwha Ocean and Samsung Heavy Industries each received orders to build 43 LNG carriers.

Based on these construction achievements, HD Korea Shipbuilding & Offshore Engineering is observed to record operating profit of 5.852 trillion won this year. Hanwha Ocean and Samsung Heavy Industries are also expected to earn operating profits of 2.609 trillion won and 1.633 trillion won, respectively. The combined operating profit of these three companies is projected to reach 10.124 trillion won. An industry official said, “This year’s shipbuilding market will show a trend where LNG vessels and large gas carriers more than offset the decrease in container ship and tanker orders.”
Source: Business Korea