A New Chapter in Korean Shipbuilding: HD Hyundai Becomes World’s First to Deliver 5,000 Ships

Surpassing Japan’s “Standard Model” and Withstanding China’s Volume Drive
Enduring Together with Partners and the Local Community, Guided by the Founder’s Spirit
“Moving Forward Into the Next Half-Century... The Pride of Korean Shipbuilding”

In 1974, at Mipo Bay in Ulsan, the first oil tanker, the "Atlantic Baron," was launched from a shipyard where only the framework had been erected on the sandy beach. This was an unprecedented industrial site where construction and production took place simultaneously, even before the shipyard was completed. At the time, engineers repeatedly cut and welded steel in an environment where wind would whip up sand across the site. There were many days when equipment failed to arrive on time, leaving workers standing idle. Nevertheless, the work never stopped.

The famous anecdote of HD Hyundai founder Chung Ju-yung persuading foreign shipowners with a 500-won bill and a single photograph of Mipo Bay has, 51 years later, led to HD Hyundai achieving another milestone: becoming the first in the world to deliver 5,000 ships. Back then, foreign engineers claimed, "Korea has no shipbuilding infrastructure," and Japanese shipping companies advised, "Building a single 50,000-ton vessel is enough for Korea." Despite this, a contract was secured for a massive 260,000-ton oil tanker, resulting in the extraordinary situation of building ships in an unfinished shipyard. Industry insiders recalled, "With today’s process management systems, this would have been impossible," adding, "Driven by the determination to get the job done no matter what, it was the only option available to Korean engineers at the time."

On November 19, HD Hyundai held a ceremony at HD Hyundai Heavy Industries in Ulsan to commemorate the delivery of its 5,000th ship. Chairman Chung Ki-sun stated, "Delivering 5,000 ships is a source of pride for Korea’s shipbuilding industry and a history of challenges that changed the paradigm of the global maritime industry," adding, "We will boldly move forward toward the next 5,000 ships and another half-century."

The figure of 5,000 ships is significant not only in its scale but also as the outcome of choices made by the company while navigating cycles of boom and bust. This achievement is the result of cumulative efforts-from the early days of erecting frameworks on the beach, to working overnight to resolve vibration issues with the Ulsan warship, to the way midsize ships compensated for slumps in the large vessel market, and to moments when the entire region mobilized to help partner companies endure hard times.

The construction of Korea’s first combat ship, the "Ulsan," in 1980 is said to encapsulate the industry’s 50-year history. Every step, from design to equipment placement, was a series of firsts. During vibration tests, when the hull shook more than expected, the blueprints were revised. Communication and sonar equipment, usually used in the field, were brought into the factory and installed directly on the ship to determine optimal placement. The experience gained through this process laid the foundation for a technological lineage that extended to nine additional Ulsan-class ships, Sejong the Great-class Aegis destroyers, and Incheon-class frigates. The fact that the 5,000th ship delivered is a patrol vessel for the Philippines is a natural continuation of this legacy.

Ulsan Ship. The Asia Business Daily DB

During this period, the difference between Japan and Korea was also evident in their production methods. At the time, Japan, the world leader in shipbuilding, used a "standard model" approach, selling ships of a fixed design to shipowners. While this reduced costs and ensured production stability, it made it difficult to respond to changing demands. Korea, on the other hand, took the opposite approach, redrawing designs from scratch whenever the shipowner’s requirements changed. An HD Hyundai executive explained, "If Japan was ready-to-wear, Korea was bespoke." This difference led to a technological reversal after the 1990s.

The resilience of the shipbuilding ecosystem is another key factor behind the achievement of 5,000 ships. Partner companies are responsible for 70% of a ship’s construction, handling most processes such as welding, piping, outfitting, and electrical work. These partners are also the first to be hit during downturns. A representative from an Ulsan equipment supplier said, "If a partner company collapses, the production line stops immediately. Even if the dock is fine, no ships will be built." Assemblyman Yoon Jongoh, who represents Ulsan’s Buk-gu district, stated, "The record of 5,000 ships belongs to the partners, local workers, and Ulsan residents across generations." This is why HD Hyundai established a department directly under the CEO for mutual growth and began to take direct responsibility for workforce, training, and quality support for its partners.

HD Hyundai Heavy Industries' Gomincheol, the first 'father and son master craftsmen' in the shipbuilding industry, and retired colleague Ko Yoonyeol. HD Hyundai Heavy Industries

The accumulation of skilled workers is also a crucial pillar. The recent emergence of the first "father and son master craftsmen" is symbolic. Tasks such as welding LNG fuel tanks, high-pressure piping, and electrical work are still dependent on human expertise. Although automation has increased, skilled hands remain essential for high-difficulty core processes. In September, Gomincheol, an engineer at HD Hyundai Heavy Industries, was selected as a "Master Craftsman of Korea" in the sheet metal fabrication field. He is the son of Ko Yunyeol, a master craftsman in the same trade who also worked at HD Hyundai Heavy Industries, making them the first father and son master craftsmen in the shipbuilding sector. The accumulation of such highly skilled personnel is seen as the foundation supporting the quality of Korean shipbuilding.

This content was produced with the assistance of AI translation services.