Peer review of the Korean shipbuilding industry and related government policies

The Korean shipbuilding industry made a significant contribution to the country’s rapid industrialisation in the post-World War 2 period, and it is now one of the top global players, leading by value and second only to China by volume. Korean shipbuilders’ output approximately tripled from 2000 until 2011, when the effects of the global financial crisis began to be reflected in yard activity, and the Korean industry accounted for 35% of global vessel completions (in gross tonne terms) in 2013. The shipbuilding industry forms an integral part of a wider maritime cluster, with marine equipment and steel comprising key inputs. The industry produces a wide variety of shiptypes, but there is a significant share of high-value, large vessels, such as container ships, very large crude oil tankers, and gas tankers. The prominence of high-value outputs has been supported by the industry’s R&D spending and skilled workforce.