Korean Shipbuilders Anticipate 30% Increase in Orders for 2023
Korea’s leading shipbuilders are set to experience a significant boost in orders this year, with projections indicating a nearly 30% increase compared to 2022. Despite a global decline in ship orders, HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries are expected to secure approximately $46.4 billion in new contracts. This figure marks a 27% rise from last year’s total of $36.3 billion and surpasses the previous peak of $44 billion recorded in 2022. The surge in orders is largely attributed to the shipbuilders’ expertise in constructing high-value vessels, particularly liquefied natural gas (LNG) carriers.
The demand for LNG carriers is driven by their advanced technology and construction complexity, which creates high entry barriers for competitors. As a result, Korea has established a dominant position in the LNG carrier market, holding an impressive 83.8% market share. From 2021 to 2025, Korean shipbuilders delivered 248 LNG vessels, while their Chinese counterparts managed only 48. This competitive edge is expected to translate into substantial profits, with industry insiders forecasting that the combined operating profit for the three major shipbuilders could exceed 10 trillion won this year.
Recent Contracts and Future Prospects
On January 6, HD Korea Shipbuilding & Offshore Engineering initiated the year’s order activity by securing a contract for four LNG carriers valued at 1.499 trillion won. This deal, made with an American shipping company, includes plans for delivery by the first half of 2029. The vessels will feature cutting-edge specifications, such as high-efficiency shaft generators and LNG reliquefaction systems, aimed at enhancing operational efficiency.
The outlook for continued earnings growth remains strong as LNG vessels ordered by domestic shipbuilders in 2022 and 2023 begin to enter full-scale delivery. Typically, LNG carriers take 2-3 years to construct and deliver. During this period, HD Korea Shipbuilding & Offshore Engineering has received orders for 83 LNG carriers, while Hanwha Ocean and Samsung Heavy Industries have each secured contracts for 43 vessels.
As a result of these construction achievements, HD Korea Shipbuilding & Offshore Engineering is projected to record an operating profit of 5.852 trillion won this year. Meanwhile, Hanwha Ocean and Samsung Heavy Industries are expected to earn operating profits of 2.609 trillion won and 1.633 trillion won, respectively. An industry official noted that the shipbuilding market in 2023 is likely to see LNG vessels and large gas carriers compensating for the anticipated decline in orders for container ships and tankers.
In summary, Korea’s shipbuilding industry is poised for a robust year, driven by its leadership in the LNG carrier segment and a strong order backlog. The strategic focus on high-value vessels is expected to sustain profitability and reinforce the country’s competitive position in the global maritime market.
