Korean shipyards left struggling as deep-sea strategy backfires

Seoul

THE deep-ocean strategy is coming back to bite South Korean shipyards.

Hyundai Heavy Industries Co, Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co - South Korea's Big Three shipbuilders - ventured into offshore oil rigs starting around 2010. The goal was to avoid direct competition with China, where inexpensive labour could churn out low-profit tankers at cheaper rates. With oil prices climbing towards US$100 a barrel, offshore rigs seemed like a savvy bet.