The Shipping Industry and Shipbuilding industry are the major and representative industries which are of the high contribution to the economic growth in Korea. Since 2000''s as the world economy led by China has entered a booming stage, they show the rapid growth. Korean shipping industry currently ranks as the 5th, whilst the shipbuilding
industry does as the top in the world. However, from the aftermath of the global financial crisis in the year of 2008, those markets are rapidly reducing and drive the shipping companies and shipbuilders to the corner of the great difficulties. Particularly, considering the low growth keynote
of the current economy, the future prospects for the recovery in both industries may be escribed as ''uncertain''. Government evaluates the importance of the shipping industry and the shipbuilding industry occupied in the national economy, and promotes the support measures for
them, while the individual enterprises also prepare their own
restructuring. However, there is little researches related to the shipping and shipbuilding industries in this regard.
This study purports to estimate the functions of Profit, Revenue, and Cost in the shipping industry and the shipbuilding industry and to analyze their effectiveness, as well as to provide implications of the governmental support policy and the direction of the enterprise''s restructuring. The subjects of this study are 32 shipping firms and 9
shipbuilding firms, and 10 years'' data since 2002 through 2011 were used. Applying Stochastic Frontier Analysis, the analyzed results and implications are as follows;
First, the shipping industry and the shipbuilding industry were revealed in the structure that could not lead the increase of profit in accordance with the increased outputprice direct to the increase of revenue. It was
caused by the cost-ineffectiveness and particularly, because of the excessive cost of capital among the cost factors.
Second, the revenue efficiency of the shipping industry represents as higher in the large shipping companies, whereas its inefficiency does as
higher in the small and medium shipping companies. When it comes to