Seoul: Shares of South Korean shipbuilder Hanwha Ocean jumped nearly 10% on Tuesday after US President Donald Trump said the company would play a role in building new warships for the United States Navy.
Speaking at a press briefing, Trump confirmed that the frigates would be constructed at the Hanwha Philly Shipyard in Philadelphia, which the South Korean firm acquired in 2024. Hanwha has pledged to invest $5 billion into the facility as part of South Korea’s broader $150 billion shipbuilding investment programme.
The announcement comes amid closer defence and industrial cooperation between Washington and Seoul under a revised US–South Korea trade framework. As part of the deal, tariffs on South Korean exports were reduced to 15%, in exchange for significant long-term investment commitments in US manufacturing and strategic industries.
Hanwha Ocean is a major player in South Korea’s shipbuilding sector, with capabilities spanning commercial vessels such as LNG carriers as well as advanced naval platforms, including submarines and surface combat ships.
Defence-related stocks in South Korea have surged this year on the back of rising global military spending. Shares of Hanwha Aerospace and Hyundai Rotem are up more than 170% and 270%, respectively, year to date. Hanwha Ocean’s stock has risen over 220% during the same period.
The rally follows last week’s announcement by the US Navy of its new FF(X) frigate class, designed to complement larger multi-mission warships and expand operational flexibility worldwide. Navy Secretary John Phelan said the vessels would form part of Trump’s proposed “Golden Fleet.”
Trump also said the US Navy plans to build two new “Trump-class” battleships, with the possibility of expanding the programme to as many as 25 ships. He described the vessels as among the most powerful surface combatants ever envisioned, citing advanced weapons systems including hypersonic missiles, lasers, and next-generation strike capabilities.
The announcement has reinforced investor optimism around South Korea’s defence export sector, which continues to benefit from heightened global demand for military hardware and strategic partnerships with Western allies.
