Public-private investment of KRW 1.406 trillion by 2030 targeted at Mokpo, Geoje, and Gunsan to support automation for smaller shipbuilders
Technological expansion from HD Hyundai, Samsung Heavy Industries, and Hanwha Ocean to automate welding and assembly processes
Advanced welding robots and automation technologies pioneered by South Korea’s major shipbuilders are set to expand into the production sites of small and medium-sized shipyards and equipment manufacturers. The government and the shipbuilding industry have committed to investing KRW 1.406 trillion (approximately $1.02 billion) by 2030 to modernize production facilities in key maritime regions, including Mokpo/Yeongam, Geoje/Busan, and Gunsan.
The investment is focused on disseminating high-end technologies from "Big Three" shipbuilders to smaller subcontractors. The plan aims to increase robot adoption in labor-intensive areas such as welding and assembly while integrating design and production data between prime contractors and their suppliers.
The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Oceans and Fisheries announced these regional investment plans during the Shipbuilding M.AX Alliance strategy meeting held in Mokpo on the 12th. The total investment figure represents the combined sum of government support and private sector capital.
Orders Surge 43% as Skilled Workforce Shrinks; Robots Deployed for Welding
According to Clarkson Research, a UK-based shipbuilding and shipping market analysis firm, South Korea’s ship orders from January to September this year increased by 43% compared to the same period last year. Conversely, an OECD report on the South Korean shipbuilding industry projects that the sector's workforce has plummeted from 203,441 in 2014 to 125,636 in 2024—a decline of roughly 38%.
The number of engineers and skilled technicians fell by approximately 16,700 over the same period, dropping from 51,420 to 34,700. While employment has shown signs of recovery since 2021 due to a rise in orders for eco-friendly vessels, the shortage of skilled labor remains a critical bottleneck.
Given that ships involve diverse designs and complex processes such as welding, piping, and painting, new hires require extensive training to perform skilled tasks. Consequently, shipbuilders are prioritizing the automation of repetitive welding and assembly work.
HD Hyundai is currently utilizing robots for ship block welding and material transport. The company is using design data to enable robots to recognize work positions and is developing "digital twin" technology to mirror physical production sites in virtual spaces.
At the Yeongam Shipyard, collaborative robots for sub-assembly, welding robots, and AI-based process monitoring systems are already in operation. Minister of Trade, Industry and Energy Kim Jeong-kwan visited the site on the 12th to inspect these facilities.
Meanwhile, Hanwha Ocean is moving forward with its "Smart Yard" initiative, and Samsung Heavy Industries is integrating robots into various production stages. Both companies are also working on connecting design and production data to streamline operations.
"Modernizing the shipbuilding industry, which has traditionally relied on manual labor, is a more difficult challenge than in any other sector," Minister Kim stated during the alliance meeting.
KRW 1.4 Trillion Allocated to Regional Hubs to Support Subcontractor Upgrades
The largest portion of the investment—KRW 596 billion—is earmarked for the Mokpo and Yeongam region. HD Hyundai Samho and Dae-a Industry will invest KRW 400 billion of this total to establish an autonomous shipyard in the Daebul Free Trade Zone in Yeongam.
The government plans to provide KRW 160 billion for technology development and KRW 36 billion to facilitate the deployment of equipment to subcontractors. The technologies developed will be shared with nine partner companies within the Daebul Industrial Complex.
An additional KRW 500 billion will be invested in the Geoje and Busan regions. Samsung Heavy Industries and Hanwha Ocean will build a platform to share design and production information, which equipment manufacturers will use to automate the production of outfitting parts such as piping and electrical distribution. In Busan, home to approximately 60% of the nation's shipbuilding equipment suppliers, KRW 100 billion will be allocated for platform construction and equipment supply.
In Gunsan, KRW 310 billion will be invested, led by J-Ocean Heavy Industries, to automate sub-assembly processes and build production data infrastructure. These technological developments and equipment rollouts will proceed in phases through 2030.
The rush toward automation is also driven by intensifying competition with China. According to Clarkson Research, China’s cumulative ship orders reached 53.91 million CGT from January to September, accounting for 76% of the global market. South Korea’s share stood at 15%. Chinese order volumes surged 92% year-on-year during the same period.
While South Korean shipbuilders maintain a competitive edge in high-value-added vessels like LNG carriers, they face a significant volume gap with China. This has amplified the need to improve shipyard efficiency alongside securing production personnel.
However, technical and financial hurdles remain in deploying automation to smaller subcontractors. Due to the unique design of every vessel, replacing human labor with robots for tasks like welding curved blocks or piping in confined spaces is difficult. Beyond equipment costs, maintenance and worker retraining present additional expenses, and aligning the disparate design and production data systems used by prime contractors and subcontractors is a complex task.
Industry experts note that even after robots are introduced, it will take time for smaller shipyards to stabilize these technologies within existing workflows. The government and industry leaders plan to manage the rollout and technical refinement incrementally over the next six years.
