|dc.description.abstract||Shipbuilding is an industry that most developing countries strategically choose as a long term development plan. South Korea has also developed the shipbuilding industry as a part of governmental plan. Since 2000, South Korea has kept the leading position in the industry and seems to be dominant until in the middle of the 2010’s.
South Korea’s biggest strength is design capability and technological superiority which should enable them to promptly reflect customer needs. In addition, a relatively abundant workforce, openness to innovation, strong R&D investment and the development of the related industries will also play key roles to remaining competitive in the industry.
Meanwhile, China has become the second largest shipbuilder in the industry since 2006. A China’s soaring economic growth has been a big push for the shipbuilding and related industries as well. As of January 2007, China has 51% of orders place worldwide, which includes an 81% share of the low end vessel market. China is now threatening not only South Korea but also all shipbuilding countries with its price competitiveness, aggressive capacity expansion and technological cooperation with western countries.
However, there are factors that may impact the two countries in a severe manner. World shipbuilding overcapacity is clearly forecast which may cause fierce price competition and a lack of a skilled workforce is expected to be a negative impact in the future. In spite of this, the future outlook for the industry is still positive. An expected boom in the LNG market is a good sign for both South Korea and China. The cruise ship market is another opportunity for South Korea to remain competitive in the future.
Consequently, South Korea and China may have bright futures. The intense competition may start from the middle of the 2010’s and the key to survive and to be more competitive through technology development. A country with superior technology will be more likely to lead the shipbuilding industry in the future.||