South Korea, Japan step up as US targets China’s shipbuilding industry – can they succeed?
Washington’s curbs on Chinese shipping give Tokyo and Seoul a chance to revive their sectors – but analysts warn challenges remain
South Korea’s president, Lee Jae-myung, who took office a month ago, campaigned on supporting the industry – which he described as being “in major crisis”.
“Shipbuilding has been a core industry driving Korea’s exports and creating jobs,” he said in a social media post on May 14. “I will create a maritime power that leads the world beyond being a shipbuilding powerhouse.”
Although the new administration has yet to pass any specific policies or bills in support of the sector, it has outlined measures in the “New Government Growth Policy Guide,” said Eon Hwang, a Seoul-based shipbuilding analyst at Nomura.
The guidelines focus on vessel development, production improvements and new growth plans, according to a translation provided by Hwang.
The new administration also aims to promote the development of future vessels, such as autonomous and eco-friendly ships, through digitalisation, automation and improved personnel training and working conditions, the document said.