South Korea's Shipbuilding Dominance Challenged by Rising Chinese Competitors

The South Korean shipbuilding industry is sounding an alarm as Chinese shipbuilders continue to gain ground in the liquefied natural gas (LNG) carrier market. According to data from Besson Nautical, during the first half of 2026, Chinese and South Korean shipbuilders secured 52 and 37 vessels respectively, capturing market shares of 57.8% and 41.1%. This represents a significant increase in China's market share compared to the same period in 2025, when they secured 15 orders.

LNG carriers are specialized vessels that demand exceptionally high technical standards, particularly regarding cargo containment systems, thermal insulation design, and stability during long-haul voyages. Historically, Japanese shipbuilders dominated this market, but Chinese shipbuilders have been rapidly closing the gap in recent years.

In fact, five Chinese shipbuilders - Hudong-Zhonghua, Jiangnan Shipyard, Dalian Shipbuilding Industry Corporation (DSIC), China Merchants Heavy Industries Haimen shipyard (CMHI Haimen shipyard), and Yangzijiang Shipbuilding - are currently building large LNG carriers. Meanwhile, South Korean shipbuilders are facing a capacity crunch due to an overwhelming order backlog and limited land resources.