HD Hyundai Executive Warns Korea’s Shipbuilding Industry Faces Existential Labor Crisis, Calls for AI-Driven Transformation

Reporter Kim Jisun / approved : 2026-06-12 06:40:51
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Photo courtesy of Yonhap News

 

 

[Alpha Biz= Kim Jisun] SEOUL, June 12 — Kim Hyung-kwan, president of HD Korea Shipbuilding & Offshore Engineering, warned that South Korea’s shipbuilding industry faces an existential labor shortage due to rapid population decline and rising education levels, calling for urgent AI-driven transformation.

Speaking at a seminar hosted by Korean Register in Seoul, Kim said the shrinking workforce—combined with the retirement of baby boomers in the coming years—could create an irreversible labor gap. He cautioned that without structural change, the industry could reach its limits within five years and face extinction within a decade.

Kim also noted that labor shortages have already driven up costs and weakened competitiveness, particularly against China, which is securing significantly more shipbuilding orders with strong state backing.

To address the crisis, he emphasized automation and a “single-platform” production system integrating design, manufacturing, and maintenance. HD Hyundai is working with Siemens to build a unified digital platform using digital twin technology.

He added that leveraging technologies from Microsoft, Google, and NVIDIA could accelerate the shift toward AI copilots and autonomous operations.

Kim said early results are already visible at HD Hyundai Mipo, where AI-based manufacturing systems have improved productivity and safety.

He also stressed the need to develop proprietary “Software Defined Vessel (SDV)” technologies to maintain Korea’s global leadership and respond to long-term demographic changes.

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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