2014 export report sees shipbuilding turnaround

The Korean shipbuilding industry will make a rebound this year after a five-year downturn in the global shipbuilding market, according to a report by the Ministry of Trade, Industry and Energy yesterday.

The report said exports of ships and offshore facilities are expected to jump 15.3 percent to $43 billion year-on-year, citing more government financial support and enhanced technologies of small shipbuilders.

In 2013, shipbuilding exports fell 6.3 percent from the previous year. Globally, shipbuilding orders have declined since 2009.

Although the global shipbuilding industry is still in a downturn, demand is expected to be strong for green ships, LNG carriers and offshore facilities, areas where Korean shipbuilders are very competitive.

Machinery and steel exports also get positive outlooks this year, despite stronger competition from Japanese rivals due to the weak yen.

Display exports are projected to continue declining by 5.3 percent to $32.2 billion, due to an oversupply and fierce competition from China.

Domestic demand for LCD televisions fell after government subsidies ended last year.

Exports of semiconductors, home appliances, petrochemicals and automobiles are predicted to maintain their growth this year.

Sporting events like the Sochi Olympics and Brazil World Cup this year are expected to be significant opportunities for Korean exporters to expand into emerging markets.

“As part of the president’s three-year economic innovation plan, which involves balanced exports, the ministry will support small exporters in terms of finance and continue removing obstacles to their overseas investment,” said an Industry Ministry official.

BY SONG SU-HYUN [ssh@joongang.co.kr]