Korean shipbuilders are increasingly filling LNG carrier slots with containership orders, a trend that may reduce profit margins despite steady revenue, reports Seoul's ChosunBiz.

Samsung Heavy Industries recently secured a contract with Taiwan's Evergreen to build seven 14,000-TEU ships, each priced at US$200 million. Evergreen split its 14-ship order between Samsung and China's Guangzhou Shipyard. Samsung has now won 11 container ship orders this year, up from four in 2024.

HD Hyundai Heavy Industries and Hanwha Ocean are also shifting focus. HD Hyundai received orders from HMM for eight 13,000-TEU container ships and two very large crude carriers. HMM placed four additional containership orders with Hanwha Ocean.

Korean shipbuilders have secured only 15 LNG carrier orders this year, 31 per cent of last year's 48. In contrast, container ship orders have reached 78, already surpassing 2024's total of 46. Containerships yield lower margins than LNG carriers.

Korea Investment & Securities warned that if LNG orders do not increase, operating margins will decline by 2027. Hanwha Ocean's margin is projected to fall to 14.8 per cent from 16.2 per cent, HD Hyundai to 15.6 per cent from 16.1 per cent, and Samsung Heavy Industries to 15 per cent from 15.3 per cent.

Analyst Kang Kyung-tae said LNG carriers offer roughly double the construction margin compared with other ship types. Without more LNG orders, shipbuilders may face margin pressure even if revenues remain stable.