Industry Minister Ahn Duk-geun revealed on Monday that the Trump administration is preparing “comprehensive institutional reforms to bolster naval power and support related shipbuilding industries.”
Official announcements detailing the initiatives are expected soon.
In addition, the U.S. Trade Representative has reportedly concluded that China employed unfair trade practices to dominate the shipbuilding and shipping sectors. The findings could open new opportunities for South Korean shipbuilders, who are well-positioned to capitalize on shifting dynamics.
“Cooperation with the U.S. is likely to intensify in areas where South Korea holds competitive advantages, such as shipbuilding,” said Yang Seung-yoon, an analyst at Eugene Investment and Securities.
Meanwhile, South Korean shipbuilders are also benefiting from robust demand in China. Hanwha Engine recently secured a landmark 6.28 trillion won ($4.3 billion) contract with an Asian shipyard, believed to be Chinese. The deal accounts for nearly half of Hanwha Engine’s average annual new orders and rivals its entire 2024 revenue of 854.4 billion won.
Chinese shipyards, which have accumulated over three years’ worth of orders, are increasingly relying on South Korean suppliers to meet their demand for advanced engine components, industry sources said.
Investor sentiment reflected growing optimism. Hanwha Ocean shares closed up 6.36 percent to 51,000 won Wednesday, marking a 52-week high. Hanwha Engine also reached a 52-week peak, gaining 9.83 percent to 26,250 won.
Other major players, including Samsung Heavy Industries and HJ Shipbuilding & Construction saw gains, underscoring a broader positive outlook for the sector.
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