Hanwha Ocean shares jump 10% after Trump says firm to build warships for U.S. Navy
South Korean shipbuilder Hanwha Ocean’s logo on its office building in Seoul, South Korea, October 15, 2025.
Kim Hongji | Reuters
Shares of South Korean firm Hanwha Ocean rose 10% on Tuesday after U.S. President Donald Trump said the firm would help build new frigates for the country’s Navy.
Speaking at the press conference, Trump said that the warships will be built at the Hanwha Philly Shipyard in Philadelphia, which the South Korean company purchased in 2024, and that South Korea promised to invest $5 billion within the scope of its $150 billion shipbuilding commitment.
The shipbuilding commitment is part of a broader U.S.-South Korea trade deal that calls for a 15% reduction in tariffs on South Korean exports in exchange for a $350 billion investment promise from Seoul, among other concessions.
Hanwha Ocean is one of South Korea’s largest 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 have been on the rise this year, with major defense players such as Hanhwa Aerospace and Hyundai Rotem gaining over 170% and 270% respectively year to date. Hanhwa Ocean is up more than 220% so far this year.
Last week, the U.S. Navy announced the FF(X) class of ships (smaller warships), which it says will complement its larger, multi-mission warships and increase operational flexibility around the world. Navy Secretary John Phelan said the new frigate class will be part of Trump’s envisioned “Golden Fleet.”
Trump said on Monday that the US Navy will build two new “Trump-class” warships and could bring the number up to 25.
The US president called the ships “some of the most lethal surface warships” and added that they “will help maintain American military superiority.” [and] Instill fear in America’s enemies around the world.”
Trump-class warships are envisaged to be equipped with hypersonic weapons, lasers, cruise missiles and nuclear weapons, according to the US President, who describes them as “the fastest, largest and by far 100 times more powerful than any warship ever built.”
