This paper analyzed worldwide competition over shipbuilding industry, and suggested some options to enhance competitiveness of Korea shipbuilding industry.

Although Korea is a No.1 player on world shipbuilding industry, the restructuring on shipbuilding industry is in progress. Because the shipbuilding industry are being affected by the worldwide financial crisis.

Financial institutions are playing major role on the restructuring of shipbuilding industry. But the financial institutions have different views on counting RG(refund guarantee) as debt. And it slows down the restructuring process.
? Financial institutions are avoiding declaration of bad loans, because they must accumulate money for irrecoverable debts.
? Under 'The Law on Accelerating Company Restructuring', 'the coordinating committee' can settle the interests among financial institutions. But the financial institutions are avoiding application on 'the coordinating committee', because the settlement may be unfavorable to them.
? To speed up restructuring, revise the law that the debtor-company can file an application to the coordinating committee.

To enhance the competitiveness on shipbuilding industry, it is critical to have non-price competitiveness. The strategic and the long-term R&D invest is also critical.
? To deal with international regulations on shipbuilding and the world market change, it is needed that establishing a R&D institution focusing on strategy and technology development.
? To establish a R&D institution on shipbuilding, revise 'The Law on Government owned Research Institutions' that can handle strategy and technology development.

To get orders from overseas, financing for orderers and ship-fund are needed.
? As part of measures to revitalize the shipping industry and shipbuilding industry, ships under construction should be included that can be purchased by ship-fund.