After a long recession, the shipbuilding industry is experiencing a boom after 10 years. In 2024, the number of employees of Hanwha Ocean and Samsung Heavy Industries exceeded 10,000 at the same time, and the annual salary of each employee rose by about 20 million won (about $13,600) in three years.
After accumulating shipbuilding volume for three years, the Korean shipbuilding industry, which is in the midst of a super cycle, is rapidly and aggressively recruiting employees. The growth trend is expected to continue this year as the U.S. and India make requests for shipbuilding cooperation and the business of offshore engineering equipment increases.
According to Samsung Heavy Industries and Hanwha Ocean’s recently released 2024 earnings report, Hanwha Ocean and Samsung Heavy Industries have 10,202 and 11,112 employees, respectively, as of the end of 2024. When the employees of partner companies are added, Hanwha Ocean’s total number of employees is 30,858 and Samsung Heavy Industries’ total number of employees is 28,751. Including employees of partner companies, Hanwha Marine has a total of 30,858 employees and Samsung Heavy Industries has a total of 28,751 employees.
As the shipbuilding industry declined in the mid-2010s, Hanwha Ocean and Samsung Heavy Industries underwent a biting restructuring.In 2021, Hanwha Ocean (then Daewoo Shipbuilding & Marine Engineering, DSME) and Samsung Heavy Industries lost 1.312 trillion won and 1.7547 trillion won, respectively. At that time, the two companies reduced their workforce to the lowest level in anticipation of a deficit of about 1 trillion won in 2022 as well. By 2022, the number of employees at Hanwha Ocean and Samsung Heavy Industries were gradually reduced from about 10,000 to 8,639 and 8,775, respectively.
However, due to the COVID-19 pandemic, the shipbuilding industry is experiencing its first boom in 10 years, and the status quo of the industry has changed dramatically. As global cargo volume increases, orders for ships, mainly liquefied natural gas (LNG) carriers and container ships, have increased accordingly. South Korean shipbuilders take on high-value-added ships through an order selection strategy, thereby accumulating at least three years of shipbuilding volume. As of the end of 2024, Hanwha Ocean holds order books of 30.4319 trillion won (about $20.7 billion) and Samsung Heavy Industries holds order books of 30.8411 trillion won (about $21 billion).
In terms of the number of employees, Hanwha Ocean increases from 8,892 in 2023 to 10,202 in 2024, an increase of about 1,600 from the lowest level in 2022. The average salary jumps from 67 million won (about US$45,600) in 2021 to 89 million won (about US$60,500) in 2024, up 22 million won (about US$15,000) in three years, an increase of 32.8%. Samsung Heavy Industries drops from 9,279 in 2021 to 8,775 in 2022, and then increase to 9,640 in 2023 and 11,112 in 2024, respectively. The employees of Samsung Heavy Industries declines from 9,279 in 2021 to 8,775 in 2022, then increases to 9,640 and 11,112 in 2023 and 2024, respectively. The average salary rises from KRW 75 million (about $51,000) in 2021 to KRW 94 million (about $64,000) in 2024, a rise of KRW 21 million in three years ( about $14,300), an increase of 25.3 percent. The salary hike is said to be attributed to performance pay and a desire to attract talent through increased wages.
South Korean shipbuilding industry officials said that the economy of Geoje City, where Hanwha Ocean and Samsung Heavy Industries shipyards are located, is also recovering as the number of employees and wages increase. Hanwha Ocean was in the red until 2023 (-196.5 billion won), but became profitable in 2024 with an operating profit of 237.9 billion won. Samsung Heavy Industries has an operating profit of 233.3 billion won and 502.7 billion won in 2023 and 2024, respectively.
Hanwha Ocean and Samsung Heavy Industries still have growth momentum in 2025. The United States and India are seeking help from South Korea to boost their domestic shipbuilding industries. Meanwhile, South Korea’s shipbuilding industry is expected to benefit from U.S. President Trump’s China policy, which intends to impose high port fees on Chinese ship operators, operators using Chinese-built ships, and operators who may order Chinese ships in an effort to curb China’s shipbuilding industry.
Following the completion of its acquisition of the Philly shipyard in the U.S. in 2024, Hanwha Ocean’s parent company, Hanwha Group, is still planning to acquire Australian shipbuilding group Austal, which owns a shipyard in the U.S. state of Alabama. Hanwha Group’s first acquisition of Austal last year ended in failure. Hanwha Ocean’s capital investment for 2024 is said to be 249.3 billion won (about $170 million), and has been significantly increased to 1.281 trillion won (about $871 million) for 2025.
Samsung Heavy Industries plans to win 1-2 orders in the field of offshore engineering equipment this year. As Samsung Heavy Industries’ advantage, offshore engineering projects cost about $1.5 billion. So far, Samsung Heavy Industries has won 5 of the 9 FLNG orders worldwide.