[After-report] U.S. warship market opens; K-shipbuilding fears three years ahead

Jun 05, 2026, 09:15 am

The atmosphere in the shipbuilding industry is hotter than ever. The United States is reviewing ways to utilize allied shipyards, and discussions on Korea-U.S. shipbuilding cooperation (MASGA) are ongoing. Added to this is the expectation of an expanded U.S. warship maintenance, repair, and overhaul (MRO) market, leading insiders to say, “The era of K-shipbuilding has arrived.”

In fact, domestic shipbuilders are showing bright expressions. Major companies such as HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries have already secured order backlogs of around three years. Some shipyards are so overloaded that they selectively accept orders due to a shortage of docks.

Yet industry insiders I met recently see things differently. Many voices worry more about three years ahead than about today’s boom. One industry official said, “Right now we have more work than we can handle, but shipbuilding is a classic cyclical industry. If we fail to prepare the next source of demand during the boom, we may soon face another order cliff.”

The global shipbuilding market trend is not entirely optimistic. According to Clarkson Research, a British shipbuilding and shipping market analysis firm, global new ship orders in 2023 totaled 56.43 million CGT, down about 27% from the previous year. Orders rebounded somewhat to 26.07 million CGT in January–April this year, but the market’s center of gravity is increasingly shifting toward China.

China’s pursuit is what the Korean industry fears most. From January to April this year, China accounted for 71% of global orders, while Korea held only 18%. China has virtually dominated the bulk carrier, tanker, and container ship markets, and is rapidly expanding into LNG carriers and eco-friendly ships.

The current boom in shipbuilding is also heavily influenced by the LNG carrier order cycle. That is why the industry is closely watching U.S. LNG projects, Mozambique LNG development, and Alaska LNG projects. The continuation of new LNG carrier orders will determine the industry’s outlook for years to come.

Defense is also emerging as a new variable. Canada’s submarine project, Poland’s defense cooperation, and the U.S. warship MRO business are notable examples. In particular, the U.S. Navy’s warship maintenance market is seen as an area where Korean shipbuilders have relative competitiveness. Expanding beyond new ship construction into maintenance services could secure stable revenue sources.

The eco-friendly ship market is another area to watch. With the International Maritime Organization (IMO) tightening environmental regulations, the market for next-generation eco-friendly ships such as ammonia-powered and methanol-powered vessels is opening in earnest. This is considered a high value-added market where Korea can differentiate itself from China.

This is also why the Ministry of Trade, Industry and Energy has recently been visiting shipbuilding equipment companies and small and medium-sized shipyards. The competitiveness of large shipbuilders ultimately depends on the ecosystem of equipment suppliers and partners. Industry voices stress that government policy must not stop at supporting large shipbuilders alone.

Policies should aim to strengthen competitiveness across the supply chain—expanding eco-friendly equipment demonstrations, supporting refund guarantees (RG), boosting equipment export competitiveness, and improving productivity at small and medium-sized shipyards.

The opening of the U.S. market and expansion of warship MRO are clearly new opportunities for K-shipbuilding. But true competitiveness depends on how well the industry prepares for the next cycle during the boom. The shipbuilding industry’s gaze is fixed not on the present, but on three years ahead. Whether today’s boom becomes a springboard for long-term growth or the eve of another order cliff depends entirely on the preparations made now.

Han Dae-ui

#U.S. warship #K-shipbuilding