[Interview] Gasamhyun, Vice Chairman of HD Hyundai Heavy Industries, "Maintaining Technological Superiority is the Path for Korean Shipbuilding"

20th Joseon Maritime Day Silver Tower Industrial Medal Awarded

"With our super-gap technology, we are ahead of domestic competitors by as little as 2 years and as much as over 5 years. Our goal is to maintain this gap through 'technology differentiation' going forward."

At the '20th Shipbuilding and Offshore Day' ceremony held on the 20th at EL Tower in Seocho-gu, Seoul, attended by Jang Young-jin, First Vice Minister of the Ministry of Trade, Industry and Energy, and others, Ga Sam-hyun, Vice Chairman of HD Hyundai Heavy Industries, said, "I always tell our employees that even if it is a business everyone else is doing, we must do it differently and better." The strength unique to HD Hyundai Heavy Industries can be summed up in one word: 'technology.'

On the 20th, Vice Chairman Kasamhyun of HD Korea Shipbuilding & Offshore Engineering attended the VIP tea meeting before the '20th Marine Day' event held at EL Tower in Seocho-gu, Seoul.
[Photo by Korea Shipbuilding & Offshore Plant Association]

- These days, I feel like HD Hyundai is not a heavy industries or shipbuilding group but a high-tech company.

▲ The management direction of HD Hyundai Group was decided (after discussions among key executives) as a super-gap technology strategy. The name of the new headquarters is the Global R&D Center, signifying the intention to establish itself as a research and development (R&D) and engineering company.

In the shipbuilding industry, one of the high carbon-emitting sectors, technological innovation for greenhouse gas reduction is a hot topic. This is why global shipbuilders and shipping companies are focusing on eco-friendly ships and digital solutions for autonomous navigation.

- The shipbuilding industry is changing rapidly. China is said to be a threat.

▲ Initially, global shipbuilding was a labor-intensive industry where the key was low labor costs. From the mid-1980s, HD Hyundai Heavy Industries secured the number one position in the global market, but it was only after the early 2000s that it began to overwhelm competitors not by quantity but by quality. At the same time, from this period, Chinese shipbuilders began to threaten the Korean shipbuilding industry by leveraging cheap labor costs. Although Chinese shipbuilders have caught up with Korean shipbuilders quantitatively, there is no place in the world that evaluates China as surpassing Korea. This is because, in terms of technology, in other words, quality, they lag behind Korean shipbuilders. To stay ahead of China, which pushes forward with scale, maintaining a technological super-gap is the path Korean shipbuilding must take.

- Can you maintain the technological lead?

▲ If we lead in technology, our shipbuilding industry can survive 30 to 40 years from now. By then, there will be no rule that ships must travel on the water surface. They may float on water, fly, or operate only underwater. No one knows. But if we are ahead by about 2 to 5 years in technology, we will not be caught up. There is no need to be 10 to 20 years ahead. We just need to be 2 to 5 years ahead even 20 years from now.

On the 20th, at the "20th Korea Maritime Day," Jang Young-jin, the 1st Vice Minister of the Ministry of Trade, Industry and Energy, presented the Silver Tower Order of Industrial Service Merit to Vice Chairman Ga Sam-hyun.
[Photo by Korea Offshore & Shipbuilding Association]

- Labor costs in the shipbuilding industry are said to be a burden.

▲ Digitalization or automation can improve productivity to some extent, but I don't think that is the answer. The product itself must be competitive to anyone. HD Hyundai Heavy Industries plans to focus all efforts on improving ship quality rather than reducing labor costs.

- Why do global shipping companies buy domestic shipbuilders' vessels that are more expensive than Chinese ships?

▲ I like Samsung Electronics, but I hear that young people these days use Apple phones, which are more expensive than Samsung phones. Although it cannot be simply compared with other industries, there seems to be a reason why our ships, which are 10% more expensive than Chinese ships, are purchased.

On this day, Vice Chairman Ga received the Silver Tower Order of Industrial Service Merit. He was recognized for securing orders centered on eco-friendly high value-added ships and leading the digital paradigm shift despite uncertain economic conditions.

Shipbuilding and Offshore Day commemorates the day on September 15, 1997, when annual order volume surpassed 10 million tons. Since 2004, it has been celebrated as the industry's largest annual event with CEOs of the shipbuilding industry gathering for the ceremony.

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