The news that a bill has been introduced in the U.S. Congress to allow the construction of U.S. Navy vessels at shipyards in allied countries like South Korea has caused shares of HD Hyundai Heavy Industries and Hanwha Ocean to jump once again. The two shipbuilders operate specialized ship divisions.
Shares of HD Hyundai Heavy Industries traded at 341,000 won at 9:32 a.m. on the 12th in the KOSPI market. The stock price rose 11.44% (35,000 won) from the previous day. During trading, the stock price soared to 345,000 won, setting a new all-time high.
Hanwha Ocean's stock also rose by 2.69% (1,700 won) at the same time. Hanwha Ocean shares traded at 66,300 won early in the session, reaching an all-time high.
Since U.S. President Donald Trump emphasized South Korea-U.S. shipbuilding cooperation, the stock prices of the two companies have continued to rise sharply. Senators Mike Lee (Republican-Utah) and John Curtis (Republican-Utah) also introduced two bills aimed at strengthening the readiness of the Navy and Coast Guard, stimulating investment sentiment.
The bill contains provisions allowing ships used by the U.S. Navy and Coast Guard to be built at shipyards in North Atlantic Treaty Organization (NATO) member countries or countries in the Indo-Pacific region with mutual defense treaties. Currently, construction at foreign shipyards is prohibited, but this aims to introduce exceptions. If the bill passes through Congress, it opens a path for HD Hyundai Heavy Industries and Hanwha Ocean to secure new business opportunities.
However, the bill includes the condition that the costs of construction at foreign shipyards must be lower than those at U.S. shipyards, and the Secretary of the Navy must confirm that Chinese corporations or multinational corporations headquartered in China do not own or operate foreign shipyards.