Korea looking to build cruiseships

Starting as early as the second half of this year, Korean shipbuilders plan to build value-added mega cruise ships in a bid to keep ahead of arch-rival China. The idea was broached at a meeting of executives from the country’s top five shipbuilders including Hyundai Heavy Industries and Daewoo Shipbuilding and the Commerce Minister Kim Young-ju.

Industry leaders also agreed to boost R&D spending to cope with competition from low labour cost Chinese shipyards and the government plans to provide full support for local yards. Even though South Korean shipbuilders are keeping ahead of their old rival Japan, they are having to move fast to branch out into the high added-value ship types such as cruise ships in order to stay ahead of their Chinese rivals who are threatening to erode the country’s dominant position.

“Chinese yards are closing the technological gap, and because they could make ships cheaper, there is a need to turn to higher value-added businesses,” an official at the ministry said. At present, shipyards in Italy, France, Germany and Finland dominate the cruise ship market which, in terms of revenue, accounts for 20% of the global shipbuilding market, according to the ministry.