A Comparative Analysis On The Shipbuilding Industry Of China And Korea

Shipbuilding is one of the important industries to support the economy of China and South Korea. China relies on the original price advantage and South Korea relies on advanced technology and strong competitiveness, so the two countries occupy the dominant position of the world’s shipbuilding market. Under the background of world economic crisis in 2008, the Shipbuilding orders received, completed vessel and residual amount of shipbuilding orders of the three global indexes show South Korea shipbuilding industry’s downturn. On the contrary, China took the first place because of the surge in the volume of logistics, the world shipbuilding market prosperity, and policy of positive support until 2013.South Korea took the crisis as a breakthrough, committed to technological innovation, with the high value of the ship’s production and a variety of business strategies for the development of the shipbuilding industry to provide a new opportunity. The investment of its capital is slightly weaker than China, but the investment in technology has greatly improved compared with the past. China has less technical investment costs than South Korea in terms of high value-added ships, but the Chinese shipbuilding industry has advantages in low value-added shipping and low wages.At the same time, in order to continue to develop and improve the competitiveness, China and South Korea introduce a variety of financial system in the shipbuilding industry. These financial policies can be effective to deal with the economic crisis, China based on large shipbuilding enterprises for the operation, South Korea based on large and medium-sized shipbuilding enterprises for the operations, so compared with China, South Korea more prone to occur financial problems, so more need financial support.This research aims to propose overcoming crisis about the shipbuilding industry in China and South Korea under the unstable macroeconomic and fierce competition environment. At the same time, it will suggest the enhancement of competitiveness for becoming a global shipbuilding power. Therefore, this thesis analyzes the market shares, technology investment and financial investment in China and South Korea, and analyzes the shipbuilding industry of China and South Korea, and puts forward the scheme of sustainable development. China and South Korea should introduce financial support, structure adjustment and the government’s aggressive support in order to develop the present shipbuilding industry that is in recession, also strengthen the technical strength, production capacity, technical personnel training enterprise competitiveness. Finally, in order to the stable development of the industry, should establish the international partnerships.