This year, the domestic shipbuilding and defense industries have recorded unprecedented overseas orders. These industries are expected to continue their upward performance trend, being considered as likely beneficiaries. In shipbuilding, high-value ships led by LNG carriers are in high demand, while in defense, the K2 tank, K9 self-propelled howitzer, and the medium-range surface-to-air guided missile "Cheongung II" are the main weapons, BusinessKorea reports.
On Nov. 29, Indian government officials, including Sury TK Ramachandran, deputy minister of ports, shipping and waterways, visited the business sites of South Korea's three major shipbuilders. This visit is part of India's strategic plan to expand its fleet from the current 1,500 ships to 2,500, despite having only 28 shipyards. The officials explored potential cooperation with South Korea in establishing local shipyards in India, ordering merchant ships, and transferring technology. This move suggests that the shipbuilding industry is poised for sustained growth rather than a temporary boom.
HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries are expected to record a combined profit for the first time in 13 years. Up to the third quarter, HD Korea Shipbuilding & Offshore Engineering reported an accumulated operating profit of 935 billion won, Hanwha Ocean 68.9 billion won, and Samsung Heavy Industries 328.5 billion won. HD Korea Shipbuilding & Offshore Engineering has been profitable for six consecutive quarters, and Samsung Heavy Industries for seven consecutive quarters.
The three shipbuilders are focusing on high-value ships with high construction prices due to limited dock facilities. Notably, domestic shipyards account for 240 out of the 340 LNG carriers on order worldwide, representing 70.6%. While China dominates orders for container ships and tankers, LNG carriers still lag behind Korean technology. An industry official noted, "It is expected that up to 1,500 additional LNG carriers could be ordered over the next 10 years," adding, "There will be no sharp decline in the three years of work accumulated by domestic shipbuilders."
Furthermore, the shipbuilding industry has received a "love call" from U.S. President-elect Donald Trump. With the U.S. Congress proposing bipartisan legislation to strengthen the shipbuilding industry, cooperation between the U.S. and Korean shipbuilding industries in the maintenance, repair, and overhaul (MRO) of U.S. Navy ships is expected to materialize as early as next year.