OECD WP6 Workshop December 4-5, 2008
Ministry of Knowledge Economy
KOREA Area Value Chain Level Rationale
Design 5 • Strong design experts Work Force • Superb manufacturing and management skills Manufacturing 4 • Moderate labor costs
R&D 4 • Outstanding design and product development capacity Technology Manufacturing 4 • Excellent manufacturing technology
Upstream 3 • World-class steel industry Related • Excellent engines, but weak in equipment Industries Downstream 3 • Weak shipping industry • Weak financing environment
Facilities 5 • Latest facilities thanks to bold investment Internal Infrastructure IT 4 • Design automation including 3D, CAD 12345 World-class Korea’s major shipbuilders have already received orders for three to four years of work. (Expecting to grow until 2011) On the basis of its strong competitive edge in this value-added field, Korea can respond effectively to global expansion in marine resource development.
Global Ranking Company Models 1 Hyundai H. I. VLCC, Container, LNG Carrier, FPSO 2 Samsung H.I. VLCC, Container, LNG Carrier, Drillship 3 Daewoo S.B. VLCC, Container, LNG Carrier, RIG 4 Hyundai Mipo PC, Bulk Carrier 5 Hyundai Samho VLCC, Container 6 STX S.B. Tanker, Container 9 Sungdon S.B. Tanker, Container, Bulk Carrier, PC 20 Hanjin H.I. Tanker, Container, Bulk Carrier These companies possess expertise and technological competitiveness in the construction of various models They have seen a smooth cash flow over the past several years as a result of the global shipbuilding boom, and are most likely strong enough to withstand a market slowdown
Global Company Models Ranking 16 SLS S.B Chemical Tanker, PC 24 SPP S.B PC, Bulk Carrier 28 SPP Plant & S.B. PC, Bulk Carrier, Container 58 Daesun S.B. Chemical Tanker, Bulk Carrier, Container 64 21c S.B. Chemical Tanker, Bulk Carrier 84 Samho Tongyoung Chemical Tanker …… Current Challenges Implications Goals
Changing Global Environment Need to develop To develop core marine technologies, technologies and •Increased competition for including next- generation ships new-concept ships new, advanced technologies •Stricter safety, environmental standards Tooste stren gthe n HR and changing trade structure NdfNeed for a syst emi c response to global development market changes and increased + competition To enhance •Difficulty recruiting a reliable, competitiveness of skilled work force shipbuilding, marine •Less한국이 competitive 당면한 edge 문제점 in equipment industries related industries compared to Need to improve rival countries To entrench Korea as industry leader in the global Issues Faced by Korea’s fundamentals for shipbuilding and Shipbuilding Industry sustainable growth marine industries • Develop value-added technology • Enhance competitiveness of ship equipment industry Product Differentiation
Active Response to Strategy for Safety, Sustainable Growth Environmental Standards
Refrain From Excessive • Actively participate in enactment • Refrain from excessive and revision of Competition facility expansion international standards • Prevent technology leaks Shipbuilding: Add Value IT: Discover New Markets
Industry - Need digitalized ship technology Shipbuilding + IT - Differentiation strategy needed
Academia Next-generation ships - Vehicle informatics track (Cruise, New concept ships) - World-class shipbuilding program Digital ships of the future (“Smart” ships) Research Centers - Technology road map Vehicle informatics - Convergence : Shipbuilding + IT
11 Thank You