HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has confirmed plans to merge its subsidiaries, HD Hyundai Mipo (HMD) and HD Hyundai Heavy Industries (HHI), creating a single powerhouse in South Korea’s maritime sector. The merged company is expected to launch in late 2025.
The merger seeks to unify operations, pool expertise, and streamline workforce integration, enabling the group to strengthen its foothold in the increasingly competitive global shipbuilding market. Under the plan, HMD shareholders will be compensated with new HHI shares.
Looking ahead, Hyundai intends to leverage the new structure to enhance its defense and naval construction capabilities, with a target of 10 trillion won ($7.1 billion) in yearly defense revenues by 2035. Beyond military contracts, the company will also expand into special-purpose vessels such as icebreakers, catering to the growing demand for Arctic-ready ships.
HD KSOE emphasized that the decision mirrors a global consolidation trend, with Chinese and Japanese shipyards already pursuing similar strategies. Market forecasts suggest that over the next decade, around 2,100 naval ships worth $360 billion will be ordered worldwide. An HD KSOE spokesperson stated that the merger reflects a strategic vision to broaden international markets, secure cutting-edge technologies, and position South Korea as a leader in future shipbuilding industries.
