South Korea's mid-sized shipbuilders report record profits driven by eco-friendly technologies and niche markets during the industry boom.
Mid-sized shipbuilders in South Korea are reporting record profits as eco-friendly technologies and niche markets drive growth during the current industry boom, reports Seoul's Chosun Daily.
HJ Shipbuilding & Construction secured a KRW353.2 billion (US$265 million) order last month for two 11,000-TEU ships from a European client. It is the first time in about 90 years that the Yeongdo Shipyard has received an order for vessels above 10,000 TEU. The company overcame dock limitations by widening hulls and maximizing cargo space efficiency.
Daehan Shipbuilding's operating profit rose 86 percent to KRW294.1 billion last year, while HJ Shipbuilding & Construction posted KRW67 billion, an 825 percent increase. K Shipbuilding recorded KRW84.7 billion in the first three quarters, seven times higher than the previous year.
Daehan Shipbuilding expanded into Suezmax-class crude oil carriers, requiring investment in heavier ship block assembly. It secured eight such orders worth KRW1.2 trillion in January and February. Shuttle tankers, introduced in 2024, also boosted profitability.
K Shipbuilding restructured around petrochemical tankers after past diversification troubles. Rising demand linked to the Russia-Ukraine war and Red Sea crisis helped it secure 15 orders last year and five more in early 2026.
Mid-sized shipyards are now targeting eco-friendly vessels, traditionally dominated by larger rivals. K Shipbuilding gained design approval from DNV for its LNG bunkering vessel, dubbed the 'floating gas station,' and plans to pursue further orders in the eco-friendly gas carrier segment.
