HD Hyundai to merge Ulsan shipyards, boosting defense and commercial capacity amid U.S. MASGA policy and rising global naval demand.
n August 27, the merger is designed to streamline operations, enhance competitiveness in defense and commercial shipbuilding, and align the group more closely with emerging U.S. maritime policies. HHI will remain as the surviving corporation, holding roughly 69 percent of shares post-merger, with a swap ratio set at one Mipo share to approximately 1.0406 HHI shares. The consolidation is scheduled for completion in December 2025.
The timing of this move is not coincidental. South Korea is positioning itself to capture new demand created by Washington’s recently announced “Make American Shipbuilding Great Again” (MASGA) initiative, which places heavy emphasis on naval procurement, icebreaker construction, and fleet modernization. By combining HHI’s longstanding expertise in naval vessels with Mipo’s efficient mid-sized shipyard and skilled workforce, HD Hyundai aims to create a more versatile shipbuilding platform capable of competing in both commercial and defense markets.
Analysts note that the merger reflects broader global dynamics. Rising geopolitical tensions, particularly in the Indo-Pacific, have driven up demand for advanced warships, patrol vessels, and logistics support ships. At the same time, Arctic routes are becoming increasingly strategic, heightening the need for powerful ice-class vessels—an area where South Korean yards could play a pivotal role. Industry insiders suggest that the unified structure will allow HD Hyundai to bid more aggressively for international naval projects while retaining cost advantages in commercial shipbuilding.
Investor sentiment has already signaled strong confidence. Following the announcement, shares of HHI surged 11.3 percent, while Mipo Dockyard rose 14.6 percent, both hitting record highs. Market observers attribute this rally not only to the merger’s potential efficiency gains but also to expectations that South Korean shipbuilders will secure a significant share of contracts tied to the MASGA program.
Looking ahead, the integration will test HD Hyundai’s ability to balance large-scale defense contracts with traditional commercial shipbuilding orders such as LNG carriers and containerships. If successful, the merger could mark a turning point for South Korea’s shipbuilding sector, positioning it as a global leader in both civilian and military maritime projects, while reinforcing U.S.–Korea industrial cooperation in an era of shifting global trade and security landscapes.