Despite the fact that shipbuilding orders awarded to Korean dockyards have seen an increase, local media informed that the need to confirm whether the increase is temporary or sustainable over the long term remains.
As Choi Jong-koo, chairman of the Financial Services Commission (FSC), said Korea’s orders have increased from 29.8% in September of last year to 45%, during a wider increase in global shipbuilding orders. However, he added that it is not sure if this is temporary or if it will be permanent over the long term.
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According to Dr. Yang Jong-seo of the Global Economy Research Institute, this increase happened due to a rise in LNG carriers and a big order from Hyundai Merchant Marine. In total, Mr. Jong-seo estimated that Korean shipbuilders’ would receive orders of 11 million CGTs, up 50% from last year. The value will be US$25.4 billion, up by 48% from 2017.
In addition, Mr. Jong-koo added that FSC will change its restructuring policy for the shipbuilding industry, in order to achieve a more efficient ecosystem.
What is more, there is the need to assess new opportunities for the Korean shipbuilding industry that may arise from new regulations to reduce shipping emissions, as well as for ballast water. For this reason, the restructuring policy will be based on a review of the shipbuilding’s innovation capabilities for ICT-powered and smart vessels.
Earlier this year, South Korea’s oceans ministry informed that it will support the building of more than 200 ships during the next three years to improve the troubled maritime industry. The country will assist in building these ships through the Korea Oceans Business Corp. (KOBC). In addition, South Korea wants local shipbuilders to build eco-friendly ships to comply with IMO regulations in 2020.