According to the industry on Jan. 5, Korea’s shipbuilding ‘Big 3’ – HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean – continued their strong export performance in 2025 despite the slowdown in global shipbuilding industry growth.
This was because Korean shipbuilders enjoyed indirect benefits from U.S. sanctions against China. Based on global cumulative orders in the third quarter, China’s market share dropped significantly to 56.1% from 70.5% in the previous year, while Korea’s share increased from 14.3% to 22.5%.
The Korea Development Bank’s Overseas Economic Research Institute forecasts that total ship orders in the 2026 shipbuilding market, including liquefied natural gas (LNG) carriers and container ships, will decrease by 14.6% compared to the previous year.
Freight rates are also expected to continue declining as trade disputes become prolonged following the inauguration of the Donald Trump administration in the United States. The International Maritime Organization’s (IMO) one-year postponement of environmental regulations, including greenhouse gas reduction targets, is also encouraging shipowners to take a wait-and-see approach.
Accordingly, domestic shipbuilders’ orders this year are also expected to fall short of last year’s levels. The Export-Import Bank projects that domestic shipbuilders’ orders this year will reach only 9 million CGT (Compensated Gross Tonnage), a 5.3% decrease from last year.
Korea’s shipbuilding Big 3 are focusing on ‘selective orders’ centered on vessel types with high added value. While the volume that Korean shipbuilders are scheduled to deliver this year is smaller than last year, the proportion of high-value cargo such as LNG carriers is high. Orders for high value-added vessels such as LNG carriers are expected to increase due to the expansion of global LNG production.
Yang Jong-seo, senior researcher at the Export-Import Bank, said, “Even if orders are somewhat sluggish in 2026, there will be no major blow to shipbuilder operations,” but added, “Preparation is necessary as problems could arise if the decline in newbuilding prices and insufficient order volume continues.”
The IMO Marine Environment Protection Committee’s (MEPC) one-year postponement of adopting ‘mid-term measures for ship greenhouse gas reduction’ in October last year is a burden. The IMO mid-term measures are a system that imposes fines when ships of 5,000 tons or more exceed a certain standard of fuel intensity.
