Even though Korean shipbuilders' overall new order grew this year, shipbuilding market next year is expected to be worsen. Stock investment is suggested to be more prudent.
According to Financial Supervisory Service of Korea and Korea Exchange, top six shipbuilders in terms of market capitalization, recorded KRW 29.2454trn ($25.677bn) of new order year to date, up by 58.97% from last year's overall KRW 18.3972trn.
The figure combines their announcement of newbuilding contracts to the exchange.
New order of Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries sharply increased to KRW 12.2975trn and KRW 11.3849trn each well up on last year, while Hyundai Mipo Dockyard and Hanjin Heavy Industries & Construction are on a downturn with KRW 507.4bn and KRW 189bn, respectively.
Hyundai Heavy Industries and STX Offshore & Shipbuilding recorded KRW 3.6003trn and KRW 1.1673trn each.
Analyst Choi Won-Kyung from Kiwoom Securities forecast, "This year, some yards made good results owing to massive new orders for offshore plant and LNG carrier. However, shipbuilding market would be in a more serious trouble, as new order for offshore and LNG carrier is likely to decrease and financial crisis in Europe would keep blowing the market."