South Korea tops China for shipbuilding orders as competition heats up

Shipyards in South Korea netted a second win over their Chinese peers this year last month, a move believed to reflect Seoul’s devotion to defend a pillar industry amid increasing competition between the two nations.

South Korean shipwrights took 40 per cent of global intake for ship orders last month, which totalled 2.37 million compensated gross tonnage, BusinessKorea reported on Monday, citing British analytics firm Clarksons Research.

China dropped to second with a 24 per cent of orders, with South Korea firms having also surpassed their Chinese counterparts in February.

Chinese firms, though, received 30 orders, compared to 18 for South Korean manufacturers.

China also consolidated its lead with new orders of 25.54 million compensated gross tonnage in the first seven months of the year, representing a market share of 63 per cent, compared to South Korea’s 8.11 million compensated gross tonnage, or 23 per cent.

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Clarksons did not reply to a request for information on Tuesday, but it said previously that China overtook South Korea in 2021 as the world’s top receiver of global shipbuilding orders in terms of annual volume.

But analysts said South Korea’s move in July could reflect shifts in the way China and South Korea view shipbuilding.

China is channelling subsidies into new industries, said Alicia Garcia-Herrero, chief economist for the Asia-Pacific region at French investment bank Natixis, with hi-tech hardware and electric vehicles government priorities for economic development.

South Korea has also added funds for its shipbuilding sector after Seoul announced plans in 2022 for US$2 billion in projects intended to support its shipping industry as global