Korean Shipbuilding Industry Poised for Growth in 2026
The shipbuilding sector in South Korea is set to play a significant role in the nation’s economy in 2026, driven by increasing demand for liquefied natural gas (LNG) carriers and the launch of the “Make American Shipbuilding Great Again (MASGA)” initiative. A recent survey by the Korea Chamber of Commerce and Industry revealed a notable rise in business sentiment, with the index climbing 19 points to 96 in the first quarter of 2026, significantly above the average of 77. This positive outlook is further supported by projections from the Korea Economic Research Institute, which anticipates that rising ship and semiconductor exports will contribute to a 0.8 percent increase in total exports for the year.
Despite a global downturn in shipbuilding orders in 2025, which saw a nearly 50 percent drop in orders to Chinese firms, South Korea’s leading shipbuilders successfully met their annual targets. HD Korea Shipbuilding & Offshore Engineering secured contracts for 133 vessels valued at $18.1 billion, exceeding its target of $18 billion. Similarly, Hanwha Ocean achieved 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, exceeding its goal of $5.8 billion.
Future Prospects and Strategic Initiatives
Looking ahead, Korean shipbuilders are focusing on securing orders for LNG carriers, with Clarkson Research Services forecasting a 24 percent increase in global orders for these vessels, reaching 115 units in 2026. This shift is largely attributed to new LNG development projects set to commence in the United States. The MASGA project, which aims to revitalize U.S. shipyards through Korean investments, 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.
The MASGA initiative also played a crucial role in the Korea-U.S. tariff agreement of 2025, further solidifying the partnership between the two nations in the shipbuilding sector. U.S. President Donald Trump has publicly praised Hanwha, describing it as a “good company” during the announcement of a collaboration with the U.S. Navy for a new frigate construction project. This partnership is expected to bolster the capabilities of both countries in the maritime industry and create new opportunities for growth.
In summary, the South Korean shipbuilding industry is gearing up for a promising 2026, driven by strong demand for LNG carriers and strategic partnerships with the United States. With a positive business sentiment and successful order fulfillment in the previous year, the industry is well-positioned to contribute significantly to the national economy.
