HD Korea Shipbuilding & Offshore Engineering plans to merge subsidiaries HD Hyundai Heavy Industries and HD Hyundai Mipo Dockyard by December, seeking to capitalize on surging global defense demand and the Trump administration’s shipbuilding revival efforts.
The consolidation aims to help the merged entity reach 10 trillion won ($7.2 billion) in annual sales by 2035, according to company statements. The ambitious revenue target reflects expectations that global naval shipbuilding contracts over the next decade could total $360 billion across 2,100 vessels, citing UK defense publisher Janes.
The merger positions South Korea’s largest shipbuilder to better compete for contracts under the “Make American Shipbuilding Great Again” initiative, a $150 billion Korean investment program designed to revive US shipyards. HD Hyundai Heavy Industries currently holds South Korea’s only military vessel construction license among the group’s shipbuilding units.
Shares of HD Hyundai Heavy Industries surged 11.3% while HD Hyundai Mipo jumped 14.6% to record highs following the announcement, with other Korean shipbuilders also rallying on MASGA expectations.
The combination seeks to match recent consolidations by Chinese and Japanese competitors who merged their top shipyards to strengthen market positions. HD Hyundai Mipo specializes in mid-sized vessels, complementing the parent company’s expertise in larger naval and commercial ships.
The company also plans to establish a Singapore-based investment vehicle in December to oversee overseas operations, including facilities in Vietnam and the Philippines. The new entity will focus on bulk carriers and tankers where Chinese shipbuilders have gained market share.
However, the 10 trillion won revenue target represents a significant leap from current levels and depends heavily on securing major defense contracts in an increasingly competitive global market.
