HD Hyundai Heavy Industries plans to acquire a U.S. shipyard but won’t expand domestically, signaling the Korean giant’s selective approach to the $150 billion Korea-U.S. shipbuilding cooperation known as MASGA.
CEO Lee Sang-kyun ruled out repurposing the company’s Gunsan Shipyard for the bilateral defense initiative at Seoul’s Shipbuilding and Ocean Day ceremony September 18. The facility, shuttered in 2017 during the industry downturn, reopened in 2022 but only produces hull blocks rather than complete vessels.
Lee stated the company won’t consider investments in new domestic shipyards, preferring to maximize use of its Mipo yard after the approved merger. The Fair Trade Commission cleared the HD Hyundai Heavy-Mipo combination the same day.
The Korean shipbuilder’s restraint comes despite industry orders scheduled through 2027 and labor shortages affecting competitors. Gunsan has remained excluded from the shipbuilding revival, only handling block production for the main Ulsan facility.
HD Hyundai signed a memorandum with private equity firm Cerberus Capital and Korea Development Bank in August to pursue U.S. shipyard acquisitions, equipment investments and advanced maritime technologies. However, the company clarified that no concrete negotiations are currently underway beyond the initial agreement.
