K-Chosun, Last Year's Orders 'Largest in 8 Years'... No.1 in High-Value and Eco-Friendly Ships

Order Volume 17.44 Million CGT, Order Value $43 Billion with Market Shares of 37% and 43%... Foundation for Rejumping as a Shipbuilding Powerhouse

[Sejong=Asia Economy Reporter Kwon Haeyoung] Last year, the domestic shipbuilding industry secured 17.44 million CGT, which is well over one-third of the global order volume, achieving the highest performance in eight years since 2013. In particular, it is evaluated that our shipbuilding industry has laid the foundation for a leap forward by taking the lead in the high value-added and eco-friendly ship market, which is expected to grow further in the future.

According to the Ministry of Trade, Industry and Energy on the 8th, the domestic shipbuilding industry accounted for 37% and 43% of the global market in order volume and order value respectively, with 17.44 million CGT and 43 billion dollars in 2021.

This order performance is the highest level since 2013 (18.45 million CGT). It increased by 112% compared to 2020 (8.23 million CGT), and by 85% compared to 2019 (9.58 million CGT), just before the outbreak of COVID-19. The share of domestic orders in the global order volume has also steadily increased from 31.2% in 2019 and 34.1% in 2020 to 37.1% in 2021. Among the total order volume, high value-added ships accounted for 12.52 million CGT, or 72%, and eco-friendly ships accounted for 10.88 million CGT, or 62%.

In particular, for high value-added ships, 12.52 million CGT (191 vessels) were ordered, accounting for 65% of the global order volume of 19.40 million CGT (302 vessels), achieving the number one market share. By ship type, 89.3% of the global orders for large liquefied natural gas (LNG) carriers were secured, 88% for VLCCs, and 47.6% for large container ships (over 12,000 TEU).

The domestic order share of eco-friendly ships also steadily increased from 57.4% in 2019, 62.2% in 2020, to 63.6% in 2021, achieving the number one position worldwide. By fuel type, about 82.4% of Korea’s total eco-friendly ship orders are LNG-powered vessels, followed by liquefied petroleum gas (LPG)-powered ships at 11.6%, and methanol-powered ships at 4.5%.

An official from the Ministry of Trade, Industry and Energy said, "Last year’s record-high order performance since 2013 shows that the previously stagnant domestic shipbuilding industry is recovering and making a leap forward," adding, "In particular, high value-added and eco-friendly ships have established themselves as Korea’s main ship types."

The government is also supporting the development of related technologies to expand the eco-friendly ship market, where Korea has strengths. Approximately 100 billion KRW will be invested to establish a full-cycle system for the development of Korean-style eco-friendly ship technologies.

Specifically, a total of 95.6 billion KRW of national funds will be invested in technology development and the establishment of testing and certification infrastructure, including ▲ securing world-leading future eco-friendly ship technologies ▲ building test bases for the dissemination of new technologies ▲ promoting the Korean-style demonstration project (Green Ship-K). Through this, the government plans to focus on the advancement and localization of core equipment for ships powered by eco-friendly fuels, including LNG-powered vessels, in response to the strengthening of global marine environmental regulations, and to support the final commercialization through the construction and operation of test vessels under the 'Green Ship-K pilot vessel construction project' for land and sea verification.

This content was produced with the assistance of AI translation services.