Shipbuilding stocks surge as Korea-US trade talks spotlight industry

Shipbuilding stocks surge as Korea-US trade talks spotlight industry

최초입력 2025.07.28 11:05:38

(HD Hyundai Heavy Industries)

South Korean shipbuilders saw their shares surge on Monday morning after the sector emerged as a key agenda item in ongoing tariff negotiations between Seoul and Washington.
HD Hyundai Heavy Industries stock was trading at 474,500 won ($344) as of 9:15 a.m., up 6.75 percent from the previous session on the main Kospi index. Hanwha Ocean shares rose 4.78 percent, while those for HD Korea Shipbuilding & Offshore Engineering gained 2.40 percent and HJ Shipbuilding & Construction shares climbed 13.03 percent to 9,540 won.
The rally comes after a meeting on July 25th, 2025, (local time) between Korea’s Minister of Trade, Industry and Energy Kim Jung-kwan and U.S. Secretary of Commerce Howard Lutnick, where shipbuilding cooperation was reportedly discussed as a core element of the bilateral negotiations. The Korean presidential office said on July 26th that “Korea confirmed the U.S.’ strong interest in the shipbuilding sector, and both sides agreed to explore mutually acceptable cooperation options.”
Investor sentiment was also buoyed by local media reports that the Korean government may offer the construction of a U.S. Navy MRO (maintenance, repair and overhaul) base in Gunsan as a negotiating card. In a note to investors, Daol Investment & Securities said, “While it remains uncertain whether the facility would be operated by HD Hyundai or the U.S. Navy and how large it would be, it could serve as a new growth driver for Korea’s shipbuilding industry from 2028 onwards.”
Meanwhile, Hotel Shilla shares plunged more than 8 percent in early trading Monday after the company reported weaker-than-expected earnings due to sluggish duty-free sales in the second quarter of 2025. The stock was down 8.46 percent at 47,050 won as of 9:26 a.m.
Hotel Shilla posted an operating profit of 8.7 billion won for the April to June 2025 period, down 68.5 percent from a year earlier, significantly below the market consensus of 16.2 billion won compiled by Yonhap Infomax. Despite a 2.1 percent year-on-year increase in duty-free revenue to 850.2 billion won, the division posted an operating loss of 11.3 billion won, returning to the red.
HD Hyundai Heavy Industries shares closed at 464,500 won while Hotel Shilla shares closed at 47,300 won.
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Shipbuilding stocks surge as Korea-US trade talks spotlight industry

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