South Korea's Shipbuilding Surge: Capitalizing on U.S. Tariffs for Growth

South KoreaS shipbuilding sector is experiencing a surge in orders this March, bouncing back from a sluggish start to the year. This uptick comes as the industry seeks to capitalize on proposed U.S. tariffs targeting ships manufactured in China.

in response to China’s growing influence in shipbuilding, South Korea has shifted its focus towards constructing high-value and technologically advanced vessels. The country remains a leader in gas carriers, even as China expands its fleet of LNG tankers. Looking ahead, South Korean firms are also exploring ammonia carriers and automated technologies.

According to clarkson Research Service, March 2025 saw South Korean yards secure 55% of global orders by tonnage—820,000 compensated gross tons (CGT)—while Chinese yards managed 520,000 CGT. However, when it comes to the number of vessels ordered, China still leads with 31 ships compared to South Korea’s 17.

This marks a significant recovery from Febuary when Chinese yards captured an overwhelming 70% of orders by tonnage while South Korea only accounted for nine percent. Historically speaking, Korean shipbuilders have struggled during the first quarter; last year they only snagged 16% of total annual orders compared to China’s impressive 70% share.

The data reveals that China maintains a commanding lead overall with nearly 94 million CGT in backlog—59% of global totals—while South Korea holds just over 36 million CGT or about 23%.

The future looks toward the U.S., which could provide new opportunities for business growth. Reports indicate that U.S. Trade Representative officials are considering fees on Chinese-built ships docking at American ports—a move supported by some factions within the Trump administration aiming to revitalize domestic shipbuilding.

Korean news outlet CHOSUNBIZ has noted concerns that these impending fees might already be influencing shipping decisions; for instance, ExxonMobil recently scrapped plans for two liquefied natural gas bunkering vessels originally intended for construction in China.

On April 3rd,HD Korea Shipbuilding & Offshore Engineering announced it had secured an additional order worth around $263 million for an LNG carrier.To date this year, they’ve booked contracts totaling $4.07 billion across various types including LNG carriers and containerships—achieving roughly one-fifth of their annual target set at $18 billion.

The Office of the United States Trade representative held public hearings on march 24 and March 26 regarding potential actions stemming from Section 301 investigations into China’s maritime ambitions.They also welcomed written comments and rebuttals but have yet to announce a timeline for final recommendations—which will likely play into broader strategies aimed at bolstering U.S.-based shipbuilding efforts amidst fears that new tariffs could dampen global trade dynamics.
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