The Korean shipping industry is one of the most important in the world. The country’s maritime trade accounts for about 1/10th of the global maritime trade. This has an impact on both the Korean and international economies. The shipping industry provides jobs, generates income, and exports goods. Korea is also a major player in global trade because it serves as an entry point to Asia for many countries.
The Korean shipping industry has its roots in Korea’s native culture. The ancient Koreans placed a great deal of importance on this maritime trade. According to Korean mythology, the country’s founding fathers built a golden image of a ship in heaven, called an “iljeol,” in the early sixth century. The son of the god of sailors, Gunmu, sailed from heaven to deliver the sacred image to the ancient capital of Gwangju.
These early days of Korea’s maritime influence reflected the importance that Koreans have placed on shipping over the years. Korea continued to develop its maritime trade throughout the Goryeo Dynasty. During that period, the country dominated the trade of rice in northeast Asia. It was said that at the height of its power, Korea would produce 15% of the world’s rice every year.
The shipping industry helps to keep the country’s economy afloat. The bulk of Korea’s maritime trade is with Asia. North America and Europe play a relatively small role in Korea’s trade. The US is the second biggest trading partner and Europe the fourth. These three regions account for about 25 percent of Korea’s total export. The Korean government has historically supported the shipping industry because it is a good example of how a small country can lead the world. In many ways, Korea’s shipping industry sets an example for how a country can prosper.
The Korean economy has grown rapidly over the past century. From the 1950s to the mid-2000s, its export growth was greater than that of China.
As the world’s second largest shipbuilding nation, Korea accounts for around 37% of global shipbuilding capacity just behind China and ahead of Japan.
Historically, the world’s cargo ships was mainly built in the United States. However, because the shipbuilding industry in the US is recovering from the pandemic onslaught and due to lack of raw materials, Korean shipbuilders have taken advantage of the opportunity to build cargo ships that match the American standards.
Why Is This Shipping Industry Important For The World?
The shipping industry helps increase global trade. According to the OECD, the maritime transport industry contributes 1.5% to global GDP, or about 3.8% of global trade. It is therefore one of the most important economic sectors in the world.
The Korean shipyard sector includes the Samsung Heavy Industries, the Hyundai Heavy Industries, and the Daewoo Shipbuilding. These three companies are the world’s third largest shipbuilder, second largest shipbuilding company, and second largest shipyard, respectively. This is due to strong demand from the international shipping industry, and through their shareholding in many shipping companies. These three companies are also important to the international supply chain for the manufacturing industry.
The Korea shipping industry has also achieved this success thanks to the favorable economic environment. The Korean economy continues to grow thanks to a global economic recovery. The South Korean economy is also in a strong position. The KOSPI index closed at record highs early this year and is even looking to go higher. Given these favorable conditions, it is a no brainer that the Korea Shipping Industry is going through a boom.
Contrary to popular belief, the Korean shipbuilding industry is not only dominating in Asia, but is becoming increasingly successful globally. As well as being a crucial player in the global shipping industry, Korea has begun to see increased international success through other industries such as manufacturing, semiconductors, and more. According to the OECD’s 2020 Economic Outlook report, the shipbuilding industry in Korea is a leader in the world, both in terms of unit production value as well as growth. The growth in the electronics and automotive industries have meant that Korea is enjoying a major boost in demand for new ships. In the next decade, it is likely that the Korean shipbuilding industry will continue to grow and export more goods around the world.
Korea’s trade industry has and will continue to be an important contributor to the country’s economic growth. In 2019, the country’s global trade reached $555 billion, which was the highest in over seven years. According to the Korean Shipping Industry Federation, exports to Europe increased by 25% in the first nine months of 2019.
On top of this, the South Korean economy grew 3.59% in 2021, according to preliminary data released in May 2021. Inflation was recorded at 1.8%. The good economic times would not have been possible without a good shipping industry. South Korea’s rising shipping industry has tremendous implications for the global economy and both the country and the global shipping industry will be reaping rewards from it in the coming years.
