South Korean Shipbuilders to Merge for Expanded Defense Support, Global Reach
South Korean conglomerate HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has announced the approval to merge HD Hyundai Mipo (HMD) and HD Hyundai Heavy Industries (HHI) into a single entity.
The merger is designed to combine technological expertise, streamline shipyard operations, and integrate skilled workforces to enhance competitiveness in the global shipbuilding market.
As part of the deal, HMD stakeholders will receive new shares in HHI. The consolidated company is scheduled to launch in December 2025.
Hyundai expects the merger to boost its naval shipbuilding capabilities and expand its role in defense contracts, with a goal of 10 trillion won ($7.1 billion) in annual defense revenue by 2035.
The combined company also plans to target specialized vessels, including icebreakers, in response to rising global demand, particularly from Arctic development.
Singapore Location
HD KSOE said the merged company will establish a Singapore-based hub in December to manage its international operations, overseeing overseas shipyards including sites in Vietnam and the Philippines.
The upcoming Southeast Asian hub will also coordinate new yard development, international partnerships, and commercial vessel production, including bulk carriers and tankers, helping the company maintain its position in the global market.
Additionally, the Singaporean center will provide a platform to advance eco-friendly ship technologies while strengthening both commercial and defense capabilities.
‘Strategic Vision’
HD KSOE said the move follows regional trends, as Chinese and Japanese shipbuilders have merged to strengthen their competitiveness.
The company added that the global market for new naval shipbuilding contracts over the next decade is projected at around 2,100 vessels worth $360 billion, while Seoul’s recent initiatives – including the Korea-US summit and the “Make America Shipbuilding Great Again” project – are expected to boost demand for South Korean defense exports.
“This restructuring reflects our strategic vision to broaden markets and strengthen shipbuilding,” said an HD KSOE official. “With the launch of the consolidated entity, we will drive market expansion and secure unrivaled technologies to lead the future shipbuilding industry.”
