Korean structurecompanies and shipbuilder alike are facing a ancient dearth in orders from in a foreign country as they teeter on the point of insolvency.
Overseas orders had been the mainstay of either industries, yet now the global slump compounded by way of falling oil costs is threatening their very existence.
For example, Samsung Heavy Industries, one of Korea's most sensible3 shipbuilders, has yet to win a unmarried overseas order this year.
The ultimate social clubused to be in October 2015 for 4 petroleum tankers from Malaysia's AET for US$200 million. No such dearth has been observed since 2009.
A Samsung staffer said, "We are in talks about three or four projects and be expecting to win orders in the 2d onepart of this year. But industry stipulations have were given worse because of Brexit, so it would in all probability not existsimpleto satisfy our targets".
Construction firms have won $15.4 billion value of overseas orders to this point this year, in comparison to $26.3 billion in the similarduration of 2015.
And the full orders of $46.1 billion for last year already amounted to just 70 % of the former year's.
Due to low crude oil prices, the large Arab oil manufacturers who used to be their heightcustomersscale backconstruction projects by more than 50 percent. And the projects that do arisearen'thugely profitable.
The scenario is even worse for shipbuilders, which earn more than 90 percent in their revenues from overseas orders.
Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering and Samsung Heavy, the pinnacle three, have won best $1.9 billion worth of overseas orders in the primary1/2 of this year.
That is not up to 1/25 of the $48.6 billion the 3 shipbuilders won in 2013, when orders got here flooding in for offshore crude oil platforms.
But the shipbuilders soon discoveredthey had taken on more than they maydeal with and in many instances lacked the experience for jobs they had undercut the contest for, leading togiant losses and bruised reputations.
The drought is most likely to continue. Offshore oil platforms are typically in call for when global oil prices surpass $60 a barrel, and it's milesnot goingthat they are going toupward thrustrapid enough.
The shipping industry could also be seeing orders dry up due to Brexit and other global pointsthat experience spooked markets.
At maximum companies, orders from Ecu transportcorporations account for the lion's share, but one European company is already appearingsymptoms of canceling orders.
An industry insider said, "If the lack persists, docks will take a seat empty from the moment half of next year. We urgently wish tostudies new products and services and products and glance for new clients".