In global shipping, it’s China vs South Korea, and Seoul is securing its shipbuilding secrets
- Analysts say it is all hands on deck in South Korea to stave off the competition from China’s surging shipbuilders in the cutthroat industry
- Chinese industry expert concedes that Korean firms are still setting the standard, but their ‘manpower shortage is a big drag’
China’s rapid advancements in shipbuilding pose a rising challenge to one of South Korea’s darling industries while adding to expectations that a winner-take-all scenario could escalate the economic rivalry between the two nations.
Meanwhile, industry analysts say South Korea is looking to keep its shipbuilding expertise under wraps, for fear of being copied and losing business.
“Chinese firms aiming to move up the value chain will have to turn to somewhere else to seek the know-how,” said Li Zhenghao, a senior surveyor with the Shanghai office of ship-classification agency Korean Register.
He was speaking in Shanghai last week at Marintec China, a maritime conference and exhibition that was attended by hundreds of international marine firms, including Korean shipyards.
Shipbuilding is a pillar industry of South Korea. Its dominance in the high-end sector, however, is facing mounting challenges from China, which has already outpaced its neighbour in many general manufacturing sectors by embracing low-cost strategies and technological innovation.
Carl Martin, a technical researcher with MRC Inc, a Busan-based maker of hi-tech navigation and communications equipment for various sea vessels, said Chinese shipyards have more capacity for mainstream bulk and container vessels, but Korean builders have more of the necessary skills to build LNG tankers and more eco-friendly vessels.