South Korea's Economy
Korea's Shipyards
How Hyundai built a world-class shipyard from scratch in the 1970s, and how Korea became one of the world's top shipbuilders.
Korea is one of the world’s top shipbuilders, alongside China.
The Hyundai legend
Chung Ju-yung, Hyundai’s founder, famously sought loans to build a shipyard in the early 1970s by showing bankers a Korean banknote with a 16th-century turtle ship, arguing Korea had shipbuilding in its history. He won an order for two tankers before the shipyard was even built.
Growth
- Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding (now Hanwha Ocean) grew into giants.
- Korea overtook Japan to become the world’s largest shipbuilder in the 2000s, before China’s rise.
Advantages
- Skilled workers and engineers.
- Steel from POSCO.
- Government support and finance.
- Specialisation in high-value ships like LNG carriers.
Challenges
- Chinese competition on price.
- Boom-bust order cycles.
- Labour shortages and ageing workforce.
Recent revival
Rising demand for LNG carriers and naval cooperation with the US helped Korean shipbuilders in the 2020s.
With no shipyard, Chung Ju-yung convinced a Greek shipowner to order tankers. He built the shipyard and the ships at the same time.
Korea built a world-class industry within decades.
- Hyundai built a shipyard from scratch in the early 1970s.
- Korea became a top shipbuilder, now alongside China.
- Skilled workers, steel and specialisation helped.
- LNG carriers and naval work revived the industry.
No recording for this one yet - EconReader can read it aloud for you.