The South Korean government plans to establish a cross-departmental task force (TF) for shipbuilding cooperation this year. The aim is to develop a comprehensive shipbuilding cooperation package that will benefit both South Korea and the United States. Additionally, within this year, strategies will be formulated to strengthen “K-Shipbuilding” in the next-generation five core industries and the segmented areas of the shipbuilding industry (materials, parts, and equipment).
On January 9, Ministry of Trade, Industry and Energy of South Korea (MOTIE) held a New Year’s greeting for workers in the shipbuilding and offshore engineering industries in Busan and announced the main policy directions for the shipbuilding industry in 2025.
MOTIE has identified “Korea-U.S. Shipbuilding Cooperation” as the main keyword for the shipbuilding industry in 2025, and plans to set up an inter-departmental working group to promote Korea-U.S. shipbuilding cooperation and develop a cooperation package between the two countries.
Previously, U.S. President-elect Donald Trump had requested cooperation with the Korean shipbuilding industry in ship maintenance, repair and overhaul (MRO) business, emphasizing the importance of the Korean shipbuilding industry and expressing the need for cooperation. Currently, the two countries are seeking to promote mutual cooperation in the shipbuilding industry and the development of the “Korea-US Shipbuilding” industry.
Meanwhile, MOTIE plans to formulate the “Shipbuilding SME Strengthening Program” in the first half of the year, which will provide a full-cycle support program for research and development (R&D), validation, and commercialization. In addition, MOTIE will formulate a growth strategy for the next five core industries of “Korea Shipbuilding” in the second half of the year, including hydrogen carriers and ammonia propulsion vessels, following liquefied natural gas (LNG) carriers.
By the end of last year, “Korea Shipbuilding” had received orders of about $110 billion, the highest level since 2009. Shipbuilding exports also hit a seven-year high of $25.63 billion. MOTIE said, “In terms of quality, we have continued to receive orders mainly for large, high value-added vessels, with orders for LNG carriers ranking first in the world for nine consecutive years.”
The ministry expects South Korea’s shipbuilding industry to continue its strong performance, as the country’s three major shipbuilding giants achieved simultaneous profitability last year for the first time in 13 years thanks to an “order screening strategy”.
In 2024, South Korea’s shipbuilding labor force rebounded to 120,000 for the first time since 2017, setting the stage for timely construction of increased orders. Actual shipbuilding volume reached 11.26 million correction gross tons (CGT) last year, the highest since 2016.