Maritime Offshore Market Snapshot

South-Korea Index

1. Major shipyards, vessel types, business potential 2. Main ship design & engineering companies, concept design companies EPC’s 3. Major marine engine, propulsion and machinery manufacturers, major machine workshops 4. Major Marine dealers, agents, consultants 5. Big Turn Key Contractors 6. Shipbuilding Associations 7. Shipowners 8. Oil and Gas companies 9. Big Projects

2 2/17/2017 © Finpro 1. Top Korean shipyards (Summary)

• As of 2013 Korea had some 80 shipbuilding companies. From these only nine (9) are major ones. From these three (3) are major global companies taking vast majority of the business. • Number of shipbuilding companies have been reducing due to difficult economic conditions. • Shipbuilding accounts for about 10% of Korean exports an 2% of value added. • Big majority of Koran shipbuilding companies are private (not listed). • Ownership structures are, in some cases, very complex and sister companies often spread outside of shipbuilding. • In 2015-2016 major shipbuilders have started to spin-off or sell non-core assets as response to difficult market conditions. • Korean shipbuilders have significant portion of high-value and large vessel orders globally. • Before 2010, all top-3 Korean shipbuilders ventured to high-margin offshore business, which turned unprofitable and finally brought heavy loses in 2015. • Year 2015 was difficult for shipbuilders globally, Koreans were not an exception. • Korean Shipbuilders’ experienced reduced sales of 20-30% through shipbuilding operations and in some cases 70% in offshore business.

3 2/17/2017 © Finpro 1. Top Korean shipyards (Top 15)

Name Shipyard size Employees 1. Hyundai Heavy Industries Co., Ltd.(HHI) 6,081,000m2 63,000 N 2. Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) 4,900,000m2 39,000 N 3. Samsung Heavy Industries Co., Ltd. 4,000,000m2 28,000 N 4. Hyundai Samho Heavy Industries Co., Ltd.(HSHI) 3,300,000m2 12,619 N 5. Hanjin Heavy Industries Co., Ltd. – SUBIC 2,739,000m2 N/A N, R 6. Hyundai Heavy Industries Co., Ltd. (Gunsan) 2,098,000m2 3,750 N 7. Sungdong Shipbuilding & Marine Engineering Co., Ltd. 1,944,000m2 8,000 N 8. Hyundai-Vinashin Shipyard Co., Ltd. 1,000,000m2 5,000 N 9. STX Offshore & Shipbuilding Co., Ltd. 1,000,000m2 2,819 N 10. Hyundai Mipo Dockyard Co., Ltd. 716,955m2 13,509 N 11. SPP Shipbuilding Co., Ltd. (Sacheon) 310,000m2 2,800 N 12. Daehan Shipbuilding Co., Ltd. (DHSC) (DSME affiliate) 278,000m2 3,000 N 13. Hanjin Heavy Industries Co., Ltd. – Yeongdo 264,000m2 N/A N, R 14. Dae Sun Shipbuilding & Engineering Co., Ltd. 206,834m2 2,131 N, R 15. SPP Shipbuilding Co., Ltd. (Goseong) 100,000m2 1,500 N

4 2/17/2017 © Finpro 1. Top Korean shipyards (List of 37)

1. Dae Sun Shipbuilding & Engineering 12. SPP Shipbuilding Co., Ltd. (Goseong)27. K.S Yanase Industries Co., Ltd. Co., Ltd. 13. SPP Shipbuilding Co., Ltd. (Sacheon) 28. Korea Yanase TongYeong 2. Daehan Shipbuilding Co., Ltd. 14. STX Offshore & Shipbuilding Co., Shipbuilding Co., Ltd (DHSC) Ltd. 29. Master Marine Yachtbuilding Co., 3. Daewoo Shipbuilding & Marine 15. Sungdong Shipbuilding & Marine Ltd. Engineering Co., Ltd. (DSME) Engineering Co., Ltd. 30. Moonchang Shipbuilding Dockyard. 4. Hanjin Heavy Industries Co., Ltd. - 16. Asia Shipbuilding Co., Ltd. Ltd. SUBIC 17. Baikal Shipyard Co., Ltd. 31. Orient Shipyard Co., Ltd. 5. Hanjin Heavy Industries Co., Ltd. - 18. Bugwang Shipyard Co., Ltd. 32. Samho I&D Co., Ltd.(Nanpo Yeongdo Shipyard) 19. Chonhaiji S.B. Co., Ltd. 6. Hyundai Heavy Industries Co., 33. Samkwang Shipbuilding & 20. No.Dongbang Shipyard Co., Ltd. Ltd.(HHI) Engineering Co., Ltd. 21. Dongil Shipyard Co., Ltd. 7. Hyundai Heavy Industries Co., Ltd. 34. Shinan Heavy Industries Co., Ltd. (Gunsan) 22. Geumgang Shipbuilding Co., Ltd. (SHICO) 8. Hyundai Mipo Dockyard Co., Ltd. 23. HK Shipbuilding Co., Ltd.(HKS) 35. Yeosu Ocean Co., Ltd. 9. Hyundai Samho Heavy Industries 24. Hyundai Engineering & Steel 36. YeunSoo Shipbuilding Co., Ltd. (YSS) Co., Ltd.(HSHI) Industries Co., Ltd. 37. Yudal Shipbuilding Co., Ltd. 10. Hyundai-Vinashin Shipyard Co., Ltd. 25. J Y Dockyard Co., Ltd. 11. Samsung Heavy Industries Co., Ltd. 26. Jangbogo Shipyard Co., Ltd.

5 2/17/2017 © Finpro 1. Top Korean shipyards (Locations)

Seoul

HHI Gunsan SPP HHI SUNGDONG HMD

HSHI Busan Ulsan DHSC STX SHI Busan

HHIC Gojae DAE SUN DSME

6 2/17/2017 © Finpro Hyundai Heavy Industries Co., Ltd. Offshore & Industrial plant & Engine & Electro Electric Construction Ship building Green Energy Engineering Engineering Machinery systems Equipment

Web-site www.hyundaiheavy.com Location Ulsan – South-Korea (Gundan and Vinashin Shipyard) Ownership Chung Mong-joon (10%), Korean Pension Service (4.7%), KCC 4%) Container Ship , Tankers/Product Carriers, Shuttle Tankers, Bulk Carriers, LNG Carriers/FSRUs, Type of ships LPG Carriers, Drillships/Drill Rigs, Ropax Pure Car Carriers, OBO Carriers, Naval Ships, Offshore Support Vessels Company Established 1972 information Contact information N/A – Too complex to describe here Business potential All main ship parts; main equipment and machinery, major electronic equipment, navigation for Finnish suppliers systems, propulsion and engines.

Web-site http://www.samsungshi.com/ Location Gojae Island – South-Korea KDB – Korea Development Bank (49.7%), Financial Supervisory Commission (12.2%), Minority Ownership shareholders (48.71%) FPSOs, FPUs, LNG&LPG Carriers, Ro-Paxs, TIVs (Turbine Installation Vessels), Drillships, LNG RVs, FSRUs, Crude Oil tankers, Product carriers, Type of ships Semi –Submersible Rigs, LNG FPSOs (FLNGs), Submarines, Fixed Platforms, Containerships/ PCTCs, Bulk carriers, Destroyers/Battleships, Chemical Tankers/Shuttle Tankers Company Established 1973 information Contact information N/A – Too complex to describe here Business potential All main ship parts; main equipment and machinery, major electronic equipment, navigation for Finnish suppliers systems, propulsion and engines.

Web-site http://www.samsungshi.com/ Location Gojae Island – South-Korea Samsung Electronics (17.6%), Samsung Life Insurance (3.4%), Samsung Electric (2.4%), Samsug Ownership SDI (1.4%) Drillships, Semi-Submersible Rigs, LNG RV/FSRUs, Shuttle Tankers, FPSOs/FSOs, FSUs, Type of ships FPUs/TLPs, LNGCs, Chemical tankers, Industrial Vessels (FDS) Platforms, Crude Oil tankers, Containers, WTIVs, LNG-FPSOs, Product carriers Company Established 1974 information Contact information N/A – Too complex to describe here Business potential All main ship parts; main equipment and machinery, major electronic equipment, navigation for Finnish suppliers systems, propulsion and engines.

Web-site http://www.hshi.co.kr/ Location Mokpo – South-Korea Ownership HHI (over 94.92%) Tankers, VLCC, Product Carriers, Chemical Tankers, Container Ships, LNG/LPG Carriers, Ro-Ro Type of ships Ships, PCTCs, FPSOs/FPUs, Drillships, S/S Rigs Bulk Carriers,, Other Vessels Company Established 1992 information Contact information N/A – Too complex to describe here Business potential All main ship parts; main equipment and machinery, major electronic equipment, navigation for Finnish suppliers systems, propulsion and engines.

Ship building Power & Heating Energy Construction

Web-site http://www.hanjinsc.com/ Location Busan – South-Korea Ownership Cho Nam-ho (46.50%), Shinyoung Asset Management (6.11%) Container Carriers, Product Carriers, Chemical Carriers, Crude Carriers, Oil Tankers, LNG/LPG Type of ships Carriers, Cable Ships, Supply Boats, Semi-Submersible Drilling Rigs, Dredgers, Naval Ships, Special Purpose Ships, Bulk Carriers, Ice Breakers Company Established 1937 information Contact information N/A – Too complex to describe here Business potential All main ship parts; main equipment and machinery, major electronic equipment, navigation for Finnish suppliers systems, propulsion and engines. Arctic solutions and Icebreaker solutions.

Ship building

Web-site http://www.isungdong.com/ Location Tongyeong – South-Korea Ownership N/A FSOs, Containerships, Shuttle tankers, Product carriers, Crude oil tankers, Bulk carriers, Purse Type of ships seiners Company Established 2001 information Contact information N/A – Too complex to describe here Business potential Solutions especially for mid-size commercial vessels, deep-sea fishing vessels and specialty for Finnish suppliers vessels.

Ship building Offshore

Web-site http://www.stxons.com/ Location Jinhae – South-Korea Korea Development Bank (39.59%), Woori bank (14.97%) NH Bank (10.07%), Shinhan Bank Ownership (5.92%) Tankers, Product Carriers, Chemical Tankers, LNG Carriers, LPG Carriers, Container Ships, Bulk Type of ships Carriers, Floating Storage & Production, Naval Ships Company Established 1967 information Contact information N/A – Too complex to describe here Business potential All main ship parts; main equipment and machinery, major electronic equipment, navigation for Finnish suppliers systems, propulsion and engines. – HEAVY FINANCIAL ISSUES!

Ship building

Web-site http://www.hmd.co.kr/ Location Ulsan – South-Korea Hyundai Samho Heavy Industries (over 43.51%), Saudi Arabia Monetary Agency (7.26%), Ownership Minority shareholders (45.19%) Tankers, Containerships, FPSOs/FPUs, VLCCs, LNG Carriers, Drillships, Product Carriers, LPG Type of ships Carriers, SS Rigs, Chemical Tankers, Ro-Ro Ships/PCTCs, Bulk Carriers, Other Vessels Company Established 1992 information Contact information N/A – Too complex to describe here Business potential All main ship parts; main equipment and machinery, major electronic equipment, navigation for Finnish suppliers systems, propulsion and engines.

Web-site http://eng.sppship.co.kr/ Location Sacheon – South-Korea (Goseong shipyard & Tongyoung plant) Ownership N/A Type of ships Bulk Carriers, Product Carriers, Container Ships, Gas Carrires, AHTS / PSVs Company Established 2002 information Contact information N/A – Too complex to describe here Business potential Solutions especially for mid-size commercial vessels, deep-sea fishing vessels and specialty for Finnish suppliers vessels.

Ship building Ship Equipment R&D

Web-site http://www.daesuns.co.kr/ Location Busan – South-Korea Ownership Korea EXIM Bank (67.27%), Ahn Kang Teh (18.90%), Minority shareholders (9.88%) Containerships (1,000 ~ 2,500 TEU), Tankers (12 ~ 75 K DWT), Bulk carriers (35 ~ 62 K DWT), Type of ships Other vessels (Special Purpose), Landing platform dock ships, LPG carriers (3.5 ~ 12 k CBM) - Nuclear waste vessels – OSVs Company Established 1945 information Contact information N/A – Too complex to describe here Business potential All main ship parts; main equipment and machinery, major electronic equipment, navigation for Finnish suppliers systems, propulsion and engines.

Ship building

Web-site http://www.shinasb.co.kr/ Location Tongyoung – South-Korea Ownership N/A Type of ships Tankers, RoRo Vessels, Bulk Carriers, Container Carriers Company Established 1946 information Contact information N/A – Too complex to describe here Business potential All main ship parts; main equipment and machinery, major electronic equipment, navigation for Finnish suppliers systems, propulsion and engines.

• No concept design companies in Korea. • No detailed design companies in Korea. (HHI and SHI are trying to imporve this capability). • Only production design companies present in Korea.

• HHI design division – Production design • SHI design division – Production design • Samsung Engineering – Plant design, mainly onshore, is trying to improve offshore. • Hyundai Engineering – Plant design, mainly onshore, is trying to improve offshore.

• Technip Korea only supports and handles admin. Each shipyard has technip office in their production sites.

• For example Keppel, Aker Solutions, Krylov institute, Rubin. • what is company’s focus?

18 2/17/2017 © Finpro 3. Major marine engine, propulsion and machinery manufacturers, major machine workshops • Engines – Wärtsilä-Hyundai Co., Ltd. www.wartsila-hyundai.com Older Wärtsilä engines; 50DF – Doosan Engine Co., Ltd. www.doosanengine.com Marine diesel engines, diesel power plants, engine parts, green systems – STX Engine Co., Ltd. (financial troubles) www.stxengine.co.kr Marine diesel engines, military diesel, communication equip., power plant, engine parts, gas trubine etc. – Hyundai Engine Co., Ltd. (HHI Division) www.hhi.co.kr World’s biggest engine maker. Also propellers, cargo oil pumps, ballast water treatment systems, and side thrusters. – Wärtsilä (service and training) www.wartsila.com – Man Engines dieselturbo.man.eu Marine engines & systems, service, compressors, steam & gas turbines – Rolls Royce www.rolls-royce.com Gas trubines and naval engines

19 2/17/2017 © Finpro 4. Major Marine dealers, agents, consultants

• Several Marine Equipment manufacturing companies distribute competing western equipment. These are usually for cases where western company is on buyer’s maker list and Korean manufacturer isn’t.

• Hanshin– System Integrator - Vaisala www.ehanshin.co.kr • Daeyang Electric – Electronics www.daeyang.co.kr • Jaitek – UPM, Metos, Marioff, KONE, Lautex www.jeitek.co.kr • Sam Young ENC. – www.samyungenc.com • Sang Myung Trading Co., Ltd. – Helkama Bica N/A • C&A Electric – Trafotec marine.cnae.co.kr • Unitech Service – Steerprop, TEVO www.unitechservice.kr

20 2/17/2017 © Finpro 5. Big Turn Key Contractors

• Machinery – HYUNDAI MARINE MACHINERY CO.,LTD. [Incinerator Plant] www.hmmco.co.kr – BY Controls, INC. [General & Control valve] www.bycontrols.com – DOOSAN ENGINE CO., LTD. [F.W Generator, Heat Exchanger] www.doosanengine.com – KC.LTD. [MGPS] www.iccp-mgps.com – DOOSAN ENGINE CO., LTD. [Main Engine] www.doosanengine.com – LHE CO.,Ltd. [Heat Exchanger] www.lhe.co.kr – SHINYOUNG MACHINERY IND., CO., LTD. [Rudder Pintle] www.shinyoungmc.co.kr – TAEWOONG CO., LTD. [Shaft(Propeller, Inter)] www.taewoong.com – DHMC Co.,Ltd. [Rudder Trunk System] www.dhmc-rudder.com – GEORIM ENGINEERING CO., LTD. [Oily Water Separator] www.georim.com – KANGRIM HEAVY INDUSTRIES CO.,LTD. [Aux. Composite Boiler] www.kangrim.com – KANGRIM HEAVY INDUSTRIES CO.,LTD. [Economizer] www.kangrim.com – SUNBO IND., CO., LTD [Fuel Oil Supply Unit] www.sunboind.co.kr – YOOWON INDURSTRY CO., LTD. [Steering Gear] www.yoowonind.com

21 2/17/2017 © Finpro 5. Big Turn Key Contractors

• Deck – HLB [Life & Rescue Boat] www.hlbkorea.com – Dai Han Anchor Chain [Anchor Chain Cable] www.dhac.co.kr – HI AIR KOREA Co.,Ltd.[Air Con/ Refrigerator] www.hiairkorea.co.kr – NK CO., LTD. [ Fire Fighting System] www.nkcf.com – HYUNDAI ELEVATOR CO.,LTD.[Elevator] www.hyundaielevator.co.kr – BIP Industries Co., Ltd. [Panel & Door] www.bn-bip.com – KOREA INDUSTRIAL MACHINERY CO., LTD. [Support] N/A – Keystone Valve (Korea) LLC. [Cargo & Ballast Valve] Website – Emerson Process Management Marine Solutions Korea Co., Ltd. [VRCS] Website – SCANA KOREA HYDRAULIC LTD. [VRCS] Scana Korea – Jung-A Marine CO., LTD. [Accomodation Ladder] www.jung-a.co.kr – Samgong CO., LTD. [Accomodation Ladder] www.sam-gong.co.kr – TANKTECH CO., LTD. [Towing Equipment] tanktech.co.kr

22 2/17/2017 © Finpro 5. Big Turn Key Contractors

• Electricity – KOC ELECTRIC CO., LTD. [Transformer] www.kocelec.com – CMR KOREA CO., LTD. [P.A & Talkback System] www.cmrkorea.com – KSB Seil Co.,Ltd. [ODME] www.ksb.com – WOOJOO M & E CO.,LTD. [UPS] www.wjme.com – LS Cable & System[Electric Cable] www.lscns.com – HANLA IMS CO., LTD.[Tank Monitoring System] www.hanlaims.com – NASAN ELECTRIC INDUSTRIES CO.,LTD. [Console] www.nasanec.co.kr – DAEYANG Electric Co., Ltd. [Lighting System] www.daeyang.co.kr – Tyco Marine Service Korea [Fire Dection Sysem] www.tycomarine.com

23 2/17/2017 © Finpro 5. Big Turn Key Contractors

• Steel outfitting – HY-LOK CORPORATION [Fitting] www.hy-lok.com – KwangSung Co.,Ltd. [Ladder] www.kse.com.hk – TMC CO., LTD. [Cable] www.tmc-cable.com – SHINYOUNG ENTERPRISE CO., LTD. [Steel Door & Hatch] N/A – KOREA INDUSTRIAL MACHINERY CO.,LTD. [Cable Tray] N/A – SEWON INDUSTRIES CO.,LTD [Expansion Joint] www.sewon-ind.com – CHUNG LYONG IND.CO., LTD. [Duct] www.chunglyong.co.kr – TK Corporation [Fitting] www.tkbend.co.kr

• Others (CCS) – TMC CO., LTD. [Membrane] www.tmc-cable.com – DongSung FINETEC [INS. Panel] www.dsfinetec.co.kr – HANKUK CARBON CO.,LTD. [INS. Panel] www.hcarbon.com

• KOSHIPA – Korea Offshore & Shipbuilding Association www.koshipa.or.kr • KOMEA – Korea Marine Equipment Association www.komea.kr • BMEA – Busan Marine Equipment Association www.bmea.or.kr • KOSIC – Korea Shipbuilding Industry Cooperative www.kosic.or.kr • The Society of Naval Architects of Korea www.snak.or.kr • KOMERI – Korea Marine Equipment Research Institute www.komeri.re.kr • The Korean Shipowners’ Association www.shipowners.or.kr

• 193 shipowners, over 1000 ships, 42.6 million gross tons under Korean flag.

• Hanjin Shipping www.hanjin.com • Hyundai Merchant Marine www.hmm.co.kr • STX Pan Ocean www.panocean.co.kr • Heung-A www.heung-a.co.kr • Sinokor Merchant Marine www.sinokor.co.kr • Nam Sung www.namsung.co.kr • Pukwan Ferry www.pukwan.co.kr • Saehan Marine www.shmarine.co.kr • Shinshung Shipping shinsungship.modoo.at • GS Shipping www.zeomarine.co.kr • GS-Caltex Oil Corp. www.gscaltex.co.kr • EUKOR Car Carriers Inc. www.eukor.com

UPSTREAM OIL COMPANIES • KNOC (KOREA NATIONAL OIL COMPANY) www.knoc.co.kr • Korea Gas Corporation (KOGAS) www.kogas.or.kr

MIDSTREAM OIL COMPANIES • Daehan Oil Pipeline Corporation www.dopco.co.kr • SK ENERGY eng.skenergy.com • Korea Gas Corporation (KOGAS) www.kogas.or.kr

DOWNSTREAM OIL COMPANIES • SK ENERGY eng.skenergy.com • GS-CALTEX OIL CORP. www.gscaltex.com • S-OIL www.s-oil.com • HYUNDAI OILBANK www.oilbank.co.kr

1. Korea National Oil Corporation (KNOC): www.knoc.co.kr 1. Eight (8) exploration projects in overseas 2. Nine (9) domestic continental shelf exploration by 2023 3. Ulsan oil tank terminal project: oil storage and harbor facility, 2016-2019 2. Korea Gas Corporation (KOGAS) www.kogas.or.kr 1. Ten(10) pipe line improvement, 2. Fifteen (15) new pipe line plans and 3. Three (3) new storage facilities

1) Busan Port Authority : www.busanpa.com 1) North Port Re-development 2005-2020 USD 8.5 billion 2) New Port West (2-5 stage) port 2008-2019 USD 350 million 3) New Port West (2-5 stage) expansion 2014-2019 USD 130 million 4) New Port West (2-6 stage) 2008-2020 USD 310 million 5) New Port West (Container Yard) 2012-2017 USD 30 million 6) New Port South (Support facilities) 2013-2020 USD 270 million 7) New Port (Small vessel pier redevelopment) 2016-2020 USD 9 million

1) Incheon Port Authority : www.icpa.or.kr 1) Incheon New Port Development 2007-2020 USD 2.5 billion 2) Incheon International passenger terminal 2012-2018 USD 500 million 3) A-am Logistics Compex 2 (Land development) 2006-2022 USD 300 million*

2) Yeosu-GwangYang Port Authority : www.ygpa.or.kr 1) Yeosu Port Plan 2011-2020 USD 400 million 2) Gwangyang Port Development Project 2011-2020 USD 4.1 billion

3) Ulsan Port Authority : www.upa.or.kr 1) Ulsan Port plan 2011-2020 USD 6 billion

4) Gyeonggi-Pyeontaek Port Authority : www.gppc.or.kr 1) Port Hinterland (Phase 2-1) 2016-2020 USD 180 million

New Shipyards 1. Samsung Heavy Industries - Nigeria, Lagos – Under construction - Possible new shipyard: Malaysia, Vietnam or Indonesia. (Weak business environment has stopped the plan)

Modernization of shipyards 1. Hanjin Heavy Industries & Construction - Yeondo Shipyard (Busan) has been subject to modernization plans for years (Weak order book has delayed the plan)

This does not include possible modernization of Korea owned overseas shipyards.