South Korea reclaims 20% of global shipbuilding orders as China’s lead weakens

South Korea is set to secure around 20 per cent of global shipbuilding orders in 2025, signaling a strong comeback in the industry. From January to November, South Korean shipyards received orders for 10.03 million compensated gross tonnage (CGT), giving them a 22 per cent share of the world market, according to The Korea Herald and Clarkson Research .

The global shipbuilding industry is facing a slowdown. Total orders worldwide fell 37 per cent to 44.99 million CGT, and China , the world’s largest shipbuilder, saw new orders drop 47 per cent to 26.64 million CGT. In contrast, South Korea, though slightly down 5 per cent compared with last year, outperformed competitors and is expected to maintain around 20-25 per cent of the market for the full year.

South Korea’s strong performance comes from multiple factors. The United States is charging a USD 50 per ton fee on Chinese-built ships entering American ports. This discourages international buyers from ordering from China, making Korean shipyards a safer choice. South Korea also specializes in high-value ships such as LNG carriers, tankers, and naval vessels, which are increasingly in demand worldwide.

Strategic collaborations with the US Navy have further boosted Korean shipbuilders. Initiatives like MASGA (Make American Shipbuilding Great Again) have opened lucrative contracts, including the partnership between HD Hyundai and Huntington Ingalls to build support ships, and Hanwha Ocean ’s acquisition of the Philly Shipyard.

Leading Korean companies are already exceeding targets. HD Korea Shipbuilding & Offshore Engineering secured USD 18.16 billion in orders for 129 ships, surpassing its goal. Hanwha Ocean won USD 9.83 billion in contracts, more than its total from last year. Samsung Heavy Industries achieved 76 per cent of its USD 9.8 billion target through tanker and carrier orders.

China’s sharp drop in orders is due to US tariffs, global shipping slowdown, and its focus on low-cost, high-volume vessels. Its current shipbuilding strengths are less aligned with the growing global demand for high-value, technologically advanced, and eco-friendly ships. Unless China adapts, its market share may continue to shrink.

Looking ahead, South Korea is expected to maintain or slightly grow its market share, particularly in high-value and defense ships. The US will see modest growth in naval shipbuilding, while India , under the Aatmanirbhar Bharat initiative, is gradually expanding its capabilities in defense and domestic commercial vessels. Overall, the global shipbuilding market is shifting toward quality, technology, and eco-friendly ships, giving countries with expertise in these areas a competitive edge.

South Korea’s resurgence shows how strategic focus on high-value vessels and international collaborations can help a country regain its position in a shrinking global market, even as larger competitors like China face setbacks.