South Korea’s Three Major Shipbuilders Expand Capacity as Utilization Tops 100%
South Korea’s top shipbuilders—HD Korea Shipbuilding & Offshore Engineering (KSOE), Samsung Heavy Industries, and Hanwha Ocean—are ramping up their production capacities in response to a new “super-cycle” in the shipbuilding industry. With current order backlogs soaring and future market demands on the rise, these companies are taking proactive steps to meet the growing needs of the industry.
Operating Beyond Limits to Meet Demand
As per reports released by the three shipbuilders, their average operating rates for the first half of 2026 exceeded normal capacity. HD Korea Shipbuilding & Offshore Engineering (KSOE) stood at 106.1%, Samsung Heavy Industries at 100.2%, and Hanwha Ocean at 100%. These rates indicate that the shipyards are operating beyond standard hours, using measures like overtime and night shifts to keep up with orders.
Investments in Expansion and Automation
To address the challenge of increasing demand, Hanwha Ocean plans to invest KRW 686.9 billion in the second half of 2026 to upgrade shipbuilding facilities. The company aims to enhance efficiency by adding a large floating dock and offshore crane by March 2027. Hanwha Ocean is also focusing on welding automation, with a goal to achieve 100% automation by 2030.
Samsung Heavy Industries is investing significantly in equipment, with plans to establish a “smart, autonomous, and unmanned” shipyard by 2030. The company’s “3X” strategy integrates Digital Transformation (DX), AI Transformation (AX), and Robotics Transformation (RX) to enhance operations. Samsung’s recent introduction of a fully automated pipe manufacturing center highlights their commitment to efficiency and workplace safety.
HD KSOE, a subsidiary of HD Hyundai, is also investing in upgrading facilities to boost productivity. The company’s “FOS (Future of Shipyard)” project aims to leverage digital twins, AI, and big data to enhance overall productivity by 30% and shorten the shipbuilding cycle by 30% upon completion.
Balancing Growth with Industry Cycles
Despite the current boom in the shipbuilding industry, South Korea’s major shipbuilders are cautious about expanding capacity. The industry is known for its cyclical nature, with periods of boom followed by downturns. To avoid potential risks of overexpansion, companies are carefully considering the long-term implications of increasing production capacity.
In conclusion, South Korea’s top shipbuilders are strategically expanding their capacities and investing in automation to meet the rising demand in the industry. By balancing growth with industry cycles, these companies aim to stay competitive and sustainable in the ever-evolving shipbuilding market.
