S.Korea: Shipbuilders Export Their Know-How

As orders are decreasing, Korean shipbuilders are starting to sell their know-how instead. The nation＇s top three shipbuilders, Daewoo, Hyundai and Samsung, are all striking deals to collaborate with overseas companies. This month, Daewoo Shipbuilding and Marine Engineering announced plans to partner with Russia＇s state-run United Shipbuilding Corporation to rebuild a shipyard near Vladivostok. Hyundai Heavy Industries agreed in July to cooperate with Russia＇s United Industrial Corporation to modernize shipyards. Meanwhile, Samsung Heavy Industries has been exporting technology to Brazil＇s Atlantico Shipyard since 2006.
Over the past several years, Samsung has raked in US$30 million in royalties and bought 10 percent of Atlantico＇s total shares.
The partnerships are expected to generate more cash for both sides, but the benefits may be short-lived. Critics point out that selling technology will have harmful long-term effects.
The biggest concern is that Russia and Brazil may rise as shipbuilding competitors once they combine advanced know-how with their own natural resources.