Troubles upon shipbuilding industries are getting longer than expected.
Analyst Yum Dong-Eun of HMC Investment & Securities said, "South Korean shipbuilding industries seem optimistic that they have a long-term momentum in fabrication of exploration and production equipment for offshore resources."
Added, "However, in order to re-evaluate individual shipyards' share price, commercial ship market is necessarily to be recovered."
He analyzed that it takes some time for commercial ship market to recover, saying "Despite a significant amount of cancellation, order postponement, etc., there still is a over-tonnage pressure, with new orders contracted in 2010 and 2011 (44m cgt and 31m cgt, respectively) after the global financial crisis."
Industry players said that increase in oil is crucial for shipbuilding market to rebound, while oil price decreases as in a recent days, investors should keep a distance in offshore sector, such as drillship, offshore plant, etc., as well.