Korean shipbuilders focus on LNG carriers, naval ships to stay profitable as global market shrinks

A 174,000-cubic-meter (6,144,752-cubic-foot) liquefied natural gas (LNG) carrier built by HD Hyundai Heavy Industries [HD HYUNDAI HEAVY INDUSTRIES]

 
Korean shipbuilders regained a 20 percent share of the global shipbuilding market in 2025, with the nation’s shipyards now focusing on liquefied natural gas (LNG) carriers and naval ships to sustain profitability this year, even as the global ship market continues to shrink.
 
Global ship orders in 2025 totaled 76.78 million compensated gross tons (CGT) — equivalent to 3,235 vessels — down 27 percent from the previous year, based on data released Wednesday by British maritime industry tracker Clarkson Research. Of that, Korea accounted for 21 percent, or 11.6 million CGT across 247 vessels, placing second after China, which took 61 percent, or 35.37 million CGT from 1,421 vessels.
 
 
Korea’s market share had dropped to 17 percent in 2024 but rebounded to the 20 percent range last year, driven by an 8 percent increase in order volume. China’s orders, by contrast, declined 35 percent over the same period. 
 
The global shipbuilding outlook, however, continues to worsen, while Chinese shipbuilders are escalating their price-based competition. The Export-Import Bank of Korea’s Overseas Economic Research Institute expects global ship orders to fall 14.6 percent by volume and 15.2 percent by value this year.
 
“As new ship prices show a gradual decline, shipowners are increasingly taking a wait-and-see approach,” said Yang Jong-seo, a visiting professor of naval architecture and ocean engineering at Seoul National University.
 
Korean shipbuilders are turning to high-value and specialized vessels such as LNG carriers and naval ships to compete. While China now dominates the container ship and bulk carrier markets, Korea retains a technological edge in LNG shipbuilding.
 

An LNG carrier built and delivered by HD Hyundai Heavy Industries in 2024 [HD HYUNDAI HEAVY INDUSTRIES]

 
The so-called Big Three — HD Korea Shipbuilding & Offshore Engineering (KSOE), Hanwha Ocean and Samsung Heavy Industries — are expected to secure $46.7 billion in new orders this year, a 28.65 percent increase from the $36.3 billion recorded in 2025, according to shipbuilding and securities industry forecasts.
 
HD Hyundai, which includes KSOE, HD Hyundai Heavy Industries and HD Hyundai Samho, has set a 2026 order target of $23.31 billion — up 29.14 percent from the $18.05 billion it achieved last year. While Hanwha Ocean and Samsung Heavy Industries have not disclosed their goals, Daol Investment & Securities estimates $12.3 billion for Hanwha Ocean and $11.1 billion for Samsung Heavy Industries. Financial data firm FnGuide projects the combined operating profit of the three shipbuilders at 7.62 trillion won ($5.26 billion).
 
Additional momentum is coming from the Make American Shipbuilding Great Again project, or MASGA, a Korea-U.S. initiative to rebuild American shipbuilding. The U.S. legislative ban on the construction or sourcing of U.S. military vessels and components from overseas may also be eased.
 
“If the [legal ban] is amended, it could pave the way for Korean shipbuilders to supply blocks and bare hulls to the United States,” said Choi Kwang-sik, a researcher at Daol Investment & Securities. “That would be a key opportunity for HD Hyundai and Hanwha Ocean. While Samsung Heavy Industries does not have a portfolio in warships, it is expected to benefit from its partnership [with U.S.-based shipbuilder General Dynamics NASSCO and Korean engineering firm DSEC] to bid for the U.S. Navy’s next-generation logistics support ship program, the NGLS.”
 

An LNG carrier manufactured by Samsung Heavy Industries [SAMSUNG HEAVY INDUSTRIES]

 
Korean shipbuilders have also started the new year with fresh wins. KSOE signed a 1.5 trillion won contract with a North American shipping company to build four LNG carriers. HD Hyundai Heavy Industries secured a contract to provide maintenance, repair and overhaul services for the 41,000-ton U.S. Navy cargo ship USNS Cesar Chavez.
 
“LNG carrier orders have risen since the second half of last year due to the emergence of new gas fields,” Yang said. “Korean shipbuilders will continue to compete in high-value ship orders. And while they already have about three years’ worth of backlog, which buffers them against short-term declines, they must also prepare for a worst-case scenario where falling prices and weak demand persist for several years.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KO SUK-HYUN, LEE SU-JEONG [[email protected]]