Korean Shipbuilders Set for Growth Amid LNG Demand
The shipbuilding sector in South Korea is poised for significant growth by 2026, driven by increasing demand for liquefied natural gas (LNG) carriers in the United States and the ambitious “Make American Shipbuilding Great Again (MASGA)” initiative. A recent survey by the Korea Chamber of Commerce and Industry indicates a notable rise in business sentiment, with the industry’s confidence index climbing 19 points to 96, well above the national average. The Korea Economic Research Institute also forecasts that robust exports of ships and semiconductors will contribute to a 0.8 percent increase in the nation’s total exports in 2026.
Strong Performance Despite Global Challenges
Despite a global downturn in shipbuilding orders during 2025, South Korea’s leading shipbuilders have successfully met their annual targets. The downturn saw a nearly 50 percent drop in orders for Chinese firms, yet HD Korea Shipbuilding & Offshore Engineering, a subsidiary of HD Hyundai, secured contracts for 133 vessels valued at $18.1 billion, exceeding its $18 billion goal. Similarly, Hanwha Ocean reported orders for 51 ships worth $9.8 billion, surpassing the previous year’s total of $8.9 billion. Samsung Heavy Industries also performed well, signing contracts worth $6.6 billion, which exceeded its target of $5.8 billion.
According to Clarkson Research Services, global shipbuilding orders fell by 37 percent year-on-year in the first 11 months of 2025, totaling 44.9 million compensated gross tons (CGT). While orders for Korean shipbuilders decreased by 5 percent to 10 million CGT, their Chinese counterparts experienced a staggering 47 percent decline to 26.6 million CGT, largely due to U.S. efforts to limit China’s maritime expansion.
Future Prospects and Strategic Initiatives
Looking ahead, Korean shipbuilders are focusing on securing orders for LNG carriers, with projections indicating a 24 percent increase in global orders for these vessels, reaching 115 units in 2026. The MASGA project, which aims to revitalize U.S. shipyards through Korean investment, is expected to enhance collaboration between South Korean and American shipbuilders. As part of this initiative, the Korean government and industry leaders plan to establish two “masters’ academies” in the U.S. in 2026 to train American shipyard workers.
U.S. President Donald Trump has also recognized the potential of Hanwha, describing it as a “good company” during the announcement of a partnership with the U.S. Navy for a new frigate construction project. This collaboration underscores the growing ties between the two nations in the shipbuilding sector, promising a bright future for South Korea’s maritime industry.
