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The logo of South Korean shipbuilder Hanwha Ocean at its office building in Seoul, South Korea, October 15, 2025.
Kim Hong-ji | Reuters
Shares of South Korean company Hanwha Ocean jumped 10% on Tuesday after U.S. President Donald Trump announced the company would help build new frigates for the nation’s navy.
Speaking at a news conference, Trump said the warships would be built at the Hanwha Philly Shipyard in Philadelphia, acquired by the South Korean company in 2024, and in which it has pledged to invest $5 billion as part of South Korea’s $150 billion shipbuilding commitment.
The shipbuilding pledge is part of a broader U.S.-South Korea trade deal that includes cutting tariffs on South Korean exports to 15 percent in exchange for a $350 billion investment commitment from Seoul, among other concessions.
Hanwha Ocean is one of South Korea’s leading shipbuilding companies, have expertise in the construction of commercial vessels such as LNG carriers, as well as military naval platforms including submarines and surface ships.
South Korean defense stocks are on a roll this year, with major defense players such as Hanhwa Aerospace and Hyundai Rotem gaining more than 170% and 270% year-to-date, respectively. Hanhwa Ocean has surged more than 220% so far this year.
Last week, the US Navy announced the creation of FF(X)-class ships, smaller combat ships, which it said will complement larger, multi-mission warships and improve operational flexibility around the world. Navy Secretary John Phelan said the new class of frigates would be part of the “Golden Fleet” envisioned by Trump.
Trump told the United States on Monday that the US Navy will build two new “Trump-class” battleships and may increase the number to 25.
The US president described the ships as “among the deadliest surface warships,” adding that they “will help maintain American military supremacy.” [and] instill fear in America’s enemies everywhere. »
Describing them as “the fastest, largest and by far 100 times more powerful battleships than any battleship ever built,” the Trump-class battleships are expected to be equipped with hypersonic weapons, lasers, cruise missiles and nuclear weapons, according to the US president.
