^{Photo: The Korea Times}

Shares of South Korea’s Hanwha Ocean climbed roughly 10 percent after U.S. President Donald Trump announced that the company will play a key role in building new warships for the U.S. Navy. The announcement immediately boosted investor confidence, highlighting Hanwha Ocean’s growing importance in global defense manufacturing and deepening industrial ties between Washington and Seoul.

U.S. Navy Frigates to Be Built in Philadelphia

Speaking at a press conference, President Trump confirmed that the new U.S. Navy frigates will be constructed at the Hanwha Philly Shipyard in Philadelphia. Hanwha acquired the historic shipyard in 2024 as part of its expansion into the U.S. defense and industrial market.

As part of the acquisition, Hanwha committed to investing approximately $5 billion into modernizing the facility, upgrading production capabilities, and expanding its workforce. This investment forms a portion of South Korea’s broader $150 billion long term shipbuilding and industrial pledge aimed at strengthening global partnerships and securing future defense contracts.

Part of a Broader U.S. South Korea Trade Framework

The shipbuilding project sits within a wider U.S. South Korea trade agreement that reduced tariffs on South Korean exports to 15 percent. In exchange, Seoul committed to large scale investments in the U.S. economy totaling roughly $350 billion across manufacturing, energy, defense, and infrastructure.

Industry analysts note that this agreement has accelerated South Korean firms’ access to U.S. government contracts while helping the United States rebuild domestic industrial capacity in strategically sensitive sectors such as shipbuilding and defense.

Hanwha Ocean’s Growing Defense Footprint

Hanwha Ocean is one of South Korea’s leading shipbuilders, with a diverse portfolio that includes LNG carriers, large scale commercial vessels, submarines, destroyers, and advanced surface combat ships. Its technical expertise and experience in both civilian and military shipbuilding have positioned the company as a credible partner for the U.S. Navy at a time when Washington is seeking to expand and modernize its fleet.

The company’s rising global profile has been reflected in its stock performance. Hanwha Ocean shares are up more than 220 percent year to date, driven by strong defense orders, international contracts, and rising geopolitical demand for naval capabilities.

Defense Stocks Rally Across South Korea

Hanwha Ocean’s rally mirrors a broader surge in South Korean defense stocks. Hanwha Aerospace has gained more than 170 percent this year, while Hyundai Rotem has advanced approximately 270 percent, fueled by strong exports of armored vehicles, missile systems, and defense technologies to Europe, the Middle East, and Asia.

Investors are increasingly viewing South Korea’s defense sector as a long term growth story, supported by rising global military spending and closer security cooperation with the United States and its allies.

Golden Fleet and the New FF(X) Frigates

Last week, the U.S. Navy formally announced the FF(X) class of ships, a new generation of smaller surface combatants designed to operate alongside larger multi mission warships. Navy officials said the frigates will enhance flexibility, patrol capacity, and global deployment readiness.

Secretary of the Navy John Phelan described the program as a core component of President Trump’s vision for a revitalized U.S. naval force, referred to as the “Golden Fleet.”

Trump Class Battleships Vision

President Trump also revealed plans for two new “Trump class” battleships, with the possibility of expanding the fleet to as many as 25 vessels over time. According to the president, the ships are envisioned as the most powerful surface warships ever built.

Trump said the battleships would be equipped with advanced hypersonic weapons, laser systems, cruise missiles, and nuclear capabilities. He described them as the fastest and largest warships in history, designed to reinforce U.S. military dominance and deter adversaries worldwide.

Market Outlook

The announcement has reinforced investor optimism around defense and shipbuilding stocks, particularly companies positioned at the intersection of U.S. military expansion and allied industrial cooperation. Analysts expect continued momentum for Hanwha Ocean as contracts move from political signaling into formal procurement stages, potentially unlocking billions of dollars in long term revenue.

With defense spending rising globally and the U.S. Navy pushing for rapid fleet modernization, Hanwha Ocean’s role in American shipbuilding could mark a significant shift in the global naval industry and a major growth catalyst for the company’s stock.