Back to overview

After suffering a severe slump in new orders during the first half of the year, Korea’s mid-sized shipbuilders are now making a final push toward an order rally in the remaining months of the second half.

From January to June 2025, the only new orders secured by Korea’s mid-sized shipbuilders were six MR-class medium-range tankers (totaling 150,000 cgt) by K Shipbuilding, representing a 72.0% decline year-on-year (in cgt terms).

The contract value also plummeted 81.5% year-on-year to just $290 million. Yang Jong-seo, a researcher at the Korea Eximbank Overseas Economic Research Institute, analyzed, “Alongside the decline in newbuilding prices, a gap in orders for high-value-added ship types such as Suezmax tankers—traditionally the core focus of mid-sized yards—has sharply reduced performance.”

He further warned, “If new orders do not accumulate quickly in the second half, it will become difficult to maintain normal operations, and shipbuilders may also face disadvantages in future price negotiations.”

Sentiment Turns on the Back of Major Contracts

Market concerns are gradually giving way to renewed optimism. As the third quarter of 2025 draws to a close, mid-sized shipbuilders are finally reporting a series of order wins.

HJ Shipbuilding & Construction led the way, announcing on September 9 that it had signed a contract with a shipowner in Oceania for four eco-friendly container carriers worth KRW 640 billion.

Each vessel is an 8,850-teu eco-friendly container carrier designed with the latest hull form and high fuel efficiency to reduce greenhouse gas emissions. All four ships will be built at the Yeongdo Shipyard in Busan and delivered sequentially starting in 2027.

Some industry sources suggest that the Oceania-based buyer is in fact Greece’s Navios Maritime Partners. According to reports, Navios acquired the contract for four methanol-ready newbuilds, originally ordered at $150 million per ship, from the initial buyer. Deliveries are scheduled between late 2027 and the first quarter of 2028.

On September 22, Daehan Shipbuilding (DaeHan Shipbuilding) announced that it had secured orders for six Suezmax crude oil tankers worth KRW 710 billion. The deal, equivalent to seven months’ worth of workload, was clinched in a single day, with each vessel valued at around KRW 120 billion—a high-quality contract by industry standards.

The Belgian company Exmar is believed to be behind four of these orders. Exmar also confirmed on September 22 that it had placed an order for four plus four Suezmax tankers with Daehan Shipbuilding, with the first delivery scheduled for the third quarter of 2027.

All six tankers meet the International Maritime Organization’s (IMO) Tier III emissions standards and the Energy Efficiency Design Index (EEDI) Phase 3 requirements. They will also be equipped with exhaust gas scrubbers, while two ships for an existing customer will be built with “LNG DF Ready” specifications, allowing future conversion to dual-fuel LNG propulsion.

On the same day, K Shipbuilding also announced an order for two 50,000-dwt product/chemical tankers worth KRW 129 billion from a European shipowner.

“These ships, scheduled for delivery in the first half of 2027, meet the IMO’s tightened environmental standards,” the company said. “They comply with EEDI Phase 3 and are designed for easy conversion to alternative fuel propulsion systems such as LNG or methanol.”

Stronger Policy Support Seen as Key to Sustaining Momentum

Whether mid-sized shipbuilders can sustain their order rally through the rest of the year remains a key question.

The industry is pinning hopes on renewed orders for mid-range tankers and small to medium-sized container ships in the second half. However, if the decline in newbuilding prices continues and shipowners’ preference for large yards persists, Korea’s mid-sized shipbuilders could find themselves in an even weaker competitive position.

There are growing calls for simultaneous efforts to strengthen government-backed financial and R&D support alongside business diversification strategies at the yard level.

Researcher Yang stressed, “Compared with China, where the state provides comprehensive support, and Japan, which is even considering establishing a new state-owned shipbuilder just to maintain its current standing, Korea’s support policies for mid-sized shipyards remain insufficient. Support is urgently needed in challenging areas such as R&D, workforce development, and financing.”

The article was provided by ASIASIS.

Visit the ASIASIS website and find more articles!

ASIASIS Website