SEOUL South Korea strengthened its hold on the global shipbuilding market last year by winning orders worth $15.2 billion, industry data showed Monday.

South Korean shipbuilders secured orders to build 313 vessels worth $15.2 billion last year, compared with orders for 227 vessels worth $9.2 billion in 1999, AFP quoted the Korea Shipbuilders Association as saying.

This makes it the second consecutive year that South Korea logged the largest share of shipbuilding orders worldwide, it said.

The association did not provide updated figures on South Korea's global market share but in 1999 it secured 40 percent ahead of Japan's 30 percent and the European Union's 18.7 percent.

"Shipbuilding orders received last year posted strong growth in value terms on stronger demand for higher-priced and larger-size vessels," a KSA official said.

Of the orders, 180 ships worth $9.6 billion were built last year, leaving a backlog of 503 vessels worth $23.1 billion at that end of 2000, the association said.

The backlog is large enough to keep South Korean shipbuilders busy for nearly three years.

The shipbuilding boom has played a major role in helping South Korea ride out its economic crisis in the past three years.

South Korean shipbuilders, however, predicted smaller orders this year due to a slowing global economy and fierce international competition.

European shipbuilders have complained that South Korea props up its shipbuilding industry with state subsidies and tax breaks. They have also accused South Korean competitors of taking orders at prices below production costs.

But South Korea has dismissed the EU allegations, saying its weak currency helped producers maintain a price advantage.

The European Commission has launched an investigation into alleged unfair practices by South Korean shipbuilders.

The commission warned that the dispute should be solved by May 1 or the South Korean industry would face a probe by the World Trade Organization.

The commission has threatened to investigate specific practices such as export guarantees, export financing, debt forgiveness, debt-for-equity swaps, interest relief and special tax concessions.