Global strategy & Embracing AI & Independent Innovation: South Korea Strives to Maintain Global Competitiveness —A Review of the Development Characteristics of South Korea's Shipbuilding Industry in

In 2025, facing changes in the global new ship order environment and limitations in domestic resources, South Korea's shipbuilding industry actively responded by accelerating the construction of a global network and deepening digital transformation, while strengthening independent innovation in the field of high-tech ships, striving to solidify its global competitiveness.

01 Fights Market Opportunities through US-China Rivalry, Outsourcing improve its Delivery Advantages.
South Korean shipbuilders improved their market responsiveness through flexible order strategies and production outsourcing. Companies such as Samsung Heavy Industries and HD Hyundai outsourced some shipbuilding to partner shipyards in Vietnam and the Philippines, effectively integrating global production capacity and shortening shipbuilding delivery cycles. This strategy helped South Korean shipbuilders increase their market share to some extent.

02 Strategic Yields fat economic Returns, High-Value Orders Guarantee Significant Profits.
Focusing on high-value-added ship types has become key to the profitability of South Korea's shipbuilding industry. Orders for green-powered ships, represented by LNG carriers, drove a several-fold year-on-year increase in operating profit for South Korea's three major shipbuilders in the third quarter of 2025. High-value orders, such as those for LNG carriers and methanol-powered ships, accounted for a significant proportion, continuously improving shipbuilding export performance.

03 Overseas Expansion Reshapes the Industrial Landscape, Diversified Layout Alleviates Resource Bottlenecks.
To overcome domestic resource constraints, major South Korean shipbuilders are accelerating their global capacity expansion. HD Hyundai is advancing shipbuilding base construction and technological cooperation in the US, Vietnam, and the Philippines; Hanwha Marine has acquired a Philadelphia shipyard and a Singaporean offshore engineering company, and is planning a base in Brazil; Samsung Heavy Industries is deepening its cooperation with shipyards in North America and Southeast Asia. This global shipbuilding network aims to be closer to the market and diversify risks.

04 South Korea-US Cooperation Framework Drives Comprehensive Investment in the US Market.
Under the promotion of the South Korean government, South Korea-US shipbuilding cooperation has been elevated to a strategic level. South Korean shipbuilders, relying on the cooperation framework, are conducting in-depth cooperation in the US market in multiple fields, from military ship repair and shipyard modernization to joint construction of LNG carriers and development of unmanned vessel technology. HD Hyundai and Hanwha Marine, among others, have undertaken US Navy ship repair projects and participated in local shipyard capacity upgrades and talent training.

05. Embracing AI and Digitalization: Smart Manufacturing Enhances Production Efficiency.
Digital transformation is the core strategy of South Korea's shipbuilding industry. Major shipyards are actively introducing AI technology to drive intelligent upgrades: HD Hyundai applies AI engineering automation and digital twin design in its shipyards; Samsung Heavy Industries launched a design-production integrated platform and implemented a comprehensive control center based on AI visual monitoring; Hanwha Marine has established a digital production control system. Simultaneously, shipbuilding robots for welding, painting, and inspection are widely used in various shipyards, promoting unmanned operation of key processes and improving shipbuilding efficiency and continuity.

06. Accelerating Technological Breakthroughs and Strengthening Independent and Controllable Innovation Capabilities.
To break the foreign technological monopoly, South Korea is focusing its efforts on core ship equipment. Samsung Heavy Industries has taken the lead in applying its independently developed LNG carrier cargo tank system to actual ships, and HD Hyundai is also accelerating related technology testing and branding. Furthermore, the South Korean government, in conjunction with industry, academia, and research institutions, has launched a special R&D project for next-generation clean energy ships, such as liquid hydrogen transport ships, aiming to seize the initiative in the future high-tech ship market.

Not limited to the LNG sector, South Korea is striving to gain a leading edge in next-generation clean energy ship technologies. By building a global shipbuilding network, focusing on high-value ship types, deeply integrating AI technology, and making breakthroughs in key ship equipment, South Korea's shipbuilding industry is strengthening its competitiveness in multiple dimensions.