Analysts said South Korean shipbuilders may view the move as a way to tackle constraints that have diminished their competitiveness against China, such as limited capacity, labour shortages and tensions with domestic trade unions.
Shifting operations to Southeast Asia, where labour costs are lower, could strengthen their edge, said Du Yu, General Manager of Drewry’s China office.
“But it takes time to improve workers’ technical skills,” she cautioned, noting that the strategy could be a viable solution for Korean shipbuilders but would not yield results overnight.
HD Hyundai plans to revive a previously bankrupt shipyard in the Philippines through a 10-year lease, with operations set to launch in January 2026, The Manila Times reported on Wednesday.
The Korean conglomerate will invest a total of US$550 million to build up to 10 vessels annually and hire 7,000 workers in total, according to the report.
