South Korean conglomerate HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has received approval to merge two of its subsidiaries, HD Hyundai Mipo (HMD) and HD Hyundai Heavy Industries (HHI), into a unified shipbuilding entity. The consolidation is expected to be finalized by December 2025.
The move aims to combine technological know-how, shipyard capacity, and skilled labor, creating greater efficiency and competitiveness in the global shipbuilding market. As part of the agreement, HMD shareholders will receive new HHI shares, ensuring a smooth transition into the merged company.
Hyundai sees the merger as a strategic step to reinforce its naval shipbuilding sector, targeting an ambitious 10 trillion won ($7.1 billion) in annual defense revenue by 2035. The firm also plans to expand into specialized vessels, including icebreakers, to meet rising demand driven by Arctic development projects.
The restructuring aligns with broader regional trends, with Chinese and Japanese shipbuilders also consolidating to strengthen their global positions. According to HD KSOE, the worldwide naval shipbuilding market could see contracts for about 2,100 vessels worth $360 billion in the next decade. Officials added that initiatives like the Korea-US summit and Washington’s “Make America Shipbuilding Great Again” project are expected to further drive demand for South Korean-built defense vessels.
