It is analyzed that Chinese shipbuilders are likely to overtake the global No.1 power house Korea.

Hyundai Research Institute of Korea announced through its report 'Threat of Chinese manufacturing industry, noticed in export market share' on January 19 that increasing rate of Korean exports has drastically slowed down in the past recent three years and, particularly, export contribution rate of Korea's core industries sharply decreased to -114.4% in 2011-14 from 100.5% in 2006-2008 (before global financial crisis). On the other hand, export contribution rate of China's core industries posted 41.3% in 2011-2014, contributing to expansion of export market share.

As for shipbuilding industry, the institute conveyed, "Korea has taken the first place in ship export market share nowadays. However, Chinese shipbuilders have recently won more orders than Korean yards that the gap in competitive power shrinks quickly between both countries. Korean yards recorded 25.8% of export market share while Chinese builders posted 20.7% in 2013. Difference of both was narrowed rapidly that Chinese builders (25.7%) overtook Korean yards (25.0%) by 0.7% in 2012. In particular, order intakes of Chinese builders have been larger than those of Korean yards in recent two years (2012-13). Thus, China is very likely to overtake Korea in ship export market in future."

To recover the competitiveness of Korea's core industries, the Hyundai Institute emphasized through the report that Korea needs to upgrade its technologies and improve values of its core businesses. It also suggested that new growth manufacturing industry should be fostered including new core material/component, convergence technology product and so on. Lastly, the institute said that businesses which have high level of dependence on Chinese market should increase diversify its export markets to prepare against 'China Risk'.