HD Hyundai Heavy Industries NAVAL & SPECIAL SHIP

▶ The merger proposal passed with approval from 98.54% and 87.56% of attending shareholders at the extraordinary general meetings held by HD Hyundai Heavy Industries (HHI) and HD Hyundai Mipo (HMD) respectively.

▶ Aiming for 37 trillion KRW in sales by 2035 through “leading K-defense, securing ultra-gap (super-gap) technology, and market expansion.”

▶ “The necessity of the merger and its strategic utility have been recognised… We will continue to lead the future shipbuilding market.”

The integrated HD Hyundai Heavy Industries will officially launch on Monday, December 1.

HHI and HMD announced that on Thursday, October 23, they each held an extraordinary shareholders’ meeting in which the “approval of merger agreement” agenda was passed with support from 98.54% and 87.56% of participating shareholders, including the National Pension Service. The two companies revealed their merger plans in August, aiming to lead Korea’s defense sector, secure super-gap technologies, and expand markets. Earlier, in September, the Korea Fair Trade Commission ruled that the restructuring should be approved, concluding that since the transaction was between affiliates, it did not cause changes in control and thus would not affect competition.

This business restructuring is a strategic initiative to achieve quantitative and qualitative scale-up, maximise synergies, expand and diversify the market, and proactively develop cutting-edge technologies to secure an absolute competitive advantage in the intensifying global market. Through the merger, the integrated HD Hyundai Heavy Industries expects to significantly strengthen its competitiveness in the defense sector. By combining HHI’s warship-building expertise with HMD’s docks, facilities and human resources specialised for naval ship construction, the company plans to expand its influence in the global defense market.

The company also anticipates securing ultra-gap technologies and increasing orders in the special-purpose vessel market. The integrated entity plans to unify the R&D and design capabilities of both firms, thereby lowering risk associated with technology development, reducing time and cost, and responding rapidly to environmental regulations. It will also combine the records of both companies in special-purpose vessels such as ice-breakers to broaden its market entry opportunities.

Consequently, the integrated HD Hyundai Heavy Industries aims to achieve KRW 37 trillion in sales (including KRW 10 trillion from the defense sector) by 2035 — nearly double the KRW 19 trillion recorded in 2024. A representative from HD Hyundai Heavy Industries commented, “The necessity and strategic utility of this merger have been recognised by the shareholders. We will lead the future shipbuilding market by bringing together the total competencies and know-how of both companies.”