Economics
Deep-Sea Plan Fails, Leaving Korean Shipyards Struggling
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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 labor could churn out low-profit tankers at cheaper rates. With oil prices climbing toward $100 a barrel, offshore rigs seemed like a savvy bet.