South Korean Shipbuilders Achieve Market Share Gains for 2025
Despite an overall challenging year in the shipbuilding sector, reports indicate that the South Korean shipbuilding industry is expected to show gains in its total orders booked in 2025 after years of market decline. The major builders were also on pace to modestly exceed their annual forecasts.
After 11 months, the South Korean shipbuilders had a 22 percent market share for the year, according to data from Clarkson Research. While the global industry was down 37 percent cumulatively after 11 months, the Koreans remained on track for yearly gains. Even with a potentially slow December, the expectation was that the industry would remain above 20 percent of the global order book for the year, which would be an increase from the 17 percent market share for Korean shipbuilders in 2024.
Clarkson calculates that at the end of 11 months, cumulative global orders were at approximately 45 million CGT (Compensated Gross Tons). The Chinese yards were down 47 percent year-over-year to just over 26.6 million CGT, while the South Koreans were at just over 10 million CGT.
The United States’ threat to impose fees on Chinese-built ships and the uncertainties over tariffs overhung the shipbuilding market for most of 2025. Some segments, such as containerships, continued strong, but even there, orders rebounded in South Korea, while other segments, including car carriers, experienced strong declines in new orders. The LNG carrier market remains strong, and the first orders were being placed for very large ammonia carriers.
HD Hyundai achieved its 2025 sales target with last-minute orders completed, including with the Philippine Department of National Defense. HD Hyundai KSOE signed a deal at the end of last week to build two 3,200-ton displacement frigates for the Philippines valued at approximately $578 million and due for delivery in the second half of 2029.
With the late December orders, HD Hyundai KSOE secured a total of 133 ship orders in 2025. The value was at $18.16 billion, surpassing a target of $18.05 billion for the year. While the company exceeded its target for the fifth consecutive year, it is by the smallest percent after years where it reached 130 to 155 percent of its targets. Containerships led the orders as well as oil tankers, segments that previously lagged due to the low-cost competition from China. HD Hyundai maintained its strong position with LNG, LPG, LNG bunker vessels, ethane carriers, and chemical tankers, as well as its orders for large ammonia carriers.
HD Hyundai looks to consolidate its position and improve operations in 2026 after completing the merger of its HD Hyundai Heavy Industries and HD Hyundai Mipo yards into a single business unit. The company announced a target of $23/31 billion in orders for 2026. That would be up 29 percent over 2025.
Its third shipbuilding unit, HD Hyundai Samho, remains independent and is reported to have its second-largest order book since 2022. Samho booked last-minute orders for three LNG carriers valued at $769.5 million, reported on December 30.
Samho’s 2025 orders are estimated at a total of $7.9 billion, far exceeding its target of $4.57 billion. It also exceeded its 2024 orders, which were just under $4.6 billion. Media reports said it would be the builder’s largest order performance since 2022, when it secured nearly $8.7 billion in orders.
Among the other large South Korean shipbuilders, reports indicate that Hanwha Ocean also continued its strong rebound after the financial troubles of the acquired Daewoo Shipbuilding and Marine Engineering (DSME). Hanwha Ocean’s orders exceeded $9.8 billion, led by very large crude carriers and LNG carriers. The company was reporting strong growth over 2024, when the shipbuilder booked $8.98 billion.
The third large builder, Samsung Heavy Industries, however, is believed to have lagged behind its yearly forecast. The last reports indicated it had booked $9.8 billion in orders in 2025, which is about three-quarters of its projection for the year. It also received orders for large crude carriers, containerships, LNG carriers, and shuttle tankers.
Even with the United States agreeing to defer its shipbuilding fees on the Chinese, expectations are high among the South Korean shipbuilders. They have entered the U.S. MRO market (maintenance and repair for USN support ships) and still expect strong opportunities from the Make American Shipbuilding Great Again (MAGSA) efforts. They remain optimistic that they will be able to enter the U.S. naval shipbuilding segment to support the Trump administration’s plans to rapidly expand the U.S. Navy and support ship fleet.
U.S. Navy Expands Maintenance and Repair Work with South Korea’s Shipyards
The U.S. Navy is continuing to expand its maintenance, repair, and overhaul assignments with South Korea’s shipyards as part of a strategy to maintain ships when possible closer to their areas of deployment. Korea broke into the MRO segment in 2024 and has now completed a series of contracts while expecting more work from the United States.
South Korea’s largest shipbuilding group, HD Hyundai Heavy Industries, is marking two milestones in the MRO business for the United States. The yard was the first to be certified to bid on the contracts, but had delayed seeking the work due to yard capacity issues. It won its first assignment in August 2025 and now reports that it has received another contract.
The repair work is expected to be a lucrative addition to the yards and one of the elements in the programs to support the United States and Korea’s Make American Shipbuilding Great Again initiative. Earlier reports estimated the value of the U.S. MRO business at more than $14.5 billion. The yards also emphasize that they will be able to leverage the expertise and track record with U.S. projects to attract other international assignments.
HD Hyundai reports it recently won an MRO contract for the USNS Cesar Chavez, a 41,000-ton Lewis and Clark-class dry cargo ship used for at-sea replenishment of U.S. warships. It is currently assigned to the U.S. 7th Fleet.
Cesar Chavez is scheduled to arrive at the shipyard in Ulsan, South Korea, in the coming days. Work is scheduled to begin on January 19, and it is anticipated that the ship will be redelivered in March. The shipyard reports it will perform maintenance on approximately 100 items, including the hull, structure, propulsion, electrical, and auxiliary systems.
The arrival of the ship comes shortly after the redelivery and departure of her sister ship, USNS Alan Shepard, which had been at the HD Hyundai shipyard since late September. The yard reports the initial contract was for approximately 60 maintenance tasks. However, during the course of the work, over 100 additional items were identified, extending the maintenance period and significantly increasing the contract amount. Work was completed at the end of the year, and the vessel departed Uslan on January 6.
HD Hyundai reports it plans to further strengthen its MRO business, including with the integration of HD Hyundai Mipo after the merger of the two divisions. It looks to increase its competitiveness and expand the repair business.
Hanwha Ocean was the first to receive assignments, and it has completed several MRO contracts. Recently, it was reported that HJ Shipbuilding & Construction has also completed its final review and inspection by the U.S. Navy. The company reports it expects to sign its Master Ship repair Agreement with the U.S. within the month. It had reportedly already won an assignment for the vessel USNS Amelia Earhart, but the ship remains in Japan and is possibly being sent to support operations off Venezuela.
Reports in the Korean media said that both HJ Shipbuilding’s Yeongdo shipyard and SK Oceanplant have recently completed their inspections by the U.S. Navy. The mid-sized yards look to also begin bidding on the MRO contracts from the U.S. Navy.
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