HD Hyundai Heavy Industries and Hanwha Ocean have joined forces to capture a larger share of the global naval export market by creating a unified “One Team” approach to international sales.
The shipbuilding giants formalized their alliance on February 25 with a memorandum of understanding signed at South Korea’s Defense Acquisition Program Administration headquarters in Gwacheon. This unprecedented collaboration in Korea’s defense sector aims to boost the nation’s competitiveness against established players like the United States, Russia, and European countries.
Under the arrangement, HD Hyundai will lead surface vessel exports while Hanwha Ocean spearheads submarine sales. The partnership allows the companies to pool their technological resources and manufacturing capabilities, potentially expanding into joint development projects in the future.
The alliance has its sights set on the $1.6 trillion U.S. naval market, where the Navy plans to expand its fleet from 295 to 390 ships by 2054. This represents a significant opportunity for Korean shipbuilders looking to establish themselves as major players in global defense contracting.
DAPA Commissioner Seok Jong-geon expressed support for the initiative, describing it as a potential turning point for Korea’s defense industry. He pledged government backing for what officials are calling “K-naval” exports, positioning the partnership as a contributor to global maritime security.
The strategic alliance comes as Korean shipbuilders seek to diversify their business amid fluctuations in the commercial shipbuilding sector and growing international demand for naval vessels.
