South Korea’s three major shipbuilders have entered a “super cycle,” achieving an operating profit of 1.5 trillion won (approximately US$1.037 billion) in the third quarter of this year, three times that of the same period last year. Among them, HD Korea Shipbuilding & Offshore Engineering (HD KSOE, HD Hyundai’s shipbuilding holding company), South Korea’s largest shipbuilder, has entered the “trillion-won club” with its single-quarter performance.
HD KSOE reported revenue of 7.5815 trillion won (approximately US$5.243 billion) in the third quarter of this year, a year-on-year increase of 21.4%; operating profit reached 1.0538 trillion won (approximately US$729 million), a year-on-year increase of 164.5%. This marks the first time the company’s quarterly operating profit has exceeded one trillion won since it transformed into a holding company in 2017.
During the same period, Hanwha Ocean achieved an operating profit of 289.8 billion won (approximately US$200 million), a surge of 1032% year-on-year; Samsung Heavy Industries achieved an operating profit of 238.1 billion won (approximately US$165 million), a year-on-year increase of 99%. As a result, the combined operating profit of South Korea’s three major shipbuilding companies in the third quarter of this year reached 1.5817 trillion won (approximately US$1.094 billion), three times that of the same period last year (543.9 billion won).
In the first three quarters of this year, HD KSOE, Hanwha Ocean and Samsung Heavy Industries had cumulative operating profits of 2.8666 trillion won, 920.1 billion won and 566 billion won respectively, totaling 4.3527 trillion won (approximately US$3.01 billion).
When combined with the fourth-quarter earnings forecast of 1.8135 trillion won provided by South Korean financial institution FnGuide, the combined operating profit of South Korea’s three major shipbuilders for the full year is projected to reach 6.1662 trillion won—roughly three times last year’s figure of 2.1747 trillion won.
According to the third-quarter report released by South Korea’s largest shipbuilder HD KSOE, the performance data disclosed by its three shipbuilding subsidiaries are as follows:
- HD Hyundai Heavy Industries achieved operating revenue of 4.4179 trillion won (approximately US$3.055 billion) and operating profit of 557.3 billion won (approximately US$385 million).
- HD Hyundai Samho achieved operating revenue of 1.9665 trillion won (approximately US$1.36 billion) and operating profit of 306.4 billion won (approximately US$212 million).
- HD Hyundai Mipo achieved operating revenue of 1.3 trillion won (approximately US$899 million), marking a 20.7% year-on-year increase, and recorded an operating profit of 200.8 billion won (approximately US$139 million), surging 470.5% year-on-year.
South Korean shipbuilders attribute the industry’s improved performance to multiple factors: growing demand for eco-friendly vessels, accelerated replacement of aging fleets, and supply chain disruptions triggered by geopolitical tensions. Furthermore, having largely completed low-margin orders secured years ago, Korean shipyards have shifted to a selective order strategy focused on high-value-added vessel types, significantly boosting profitability.
South Korean shipbuilders are currently focusing their strategy on recently restarted liquefied natural gas (LNG) carrier and floating liquefied natural gas production facility (FLNG) projects, while extending their “super boom cycle” by expanding into specialized vessel operations. Market expectations for expansion in the maritime defense sector have also intensified following U.S. President Trump’s recent approval for Hanwha Philly Shipyard to construct nuclear submarines.
HD KSOE officials stated: “As LNG projects centered in North America gradually come online, we anticipate generating 57 million tons of new demand starting in 2029. Considering that typically two LNG carriers are required for every 10 million tons of demand, this is expected to create order demand for over 100 vessels.”
On November 3, HD KSOE disclosed its third-quarter 2025 results based on consolidated financial statements.
In the first nine months of 2025, HD KSOE’s net profit surged to 876.7 billion won (approximately US$606 million), compared to just 176.4 billion won during the same period last year.
The company stated that despite reduced operating days due to seasonal factors, it achieved outstanding performance in the third quarter. This was attributable to balanced growth across all shipbuilding segments, including enhanced production efficiency in the commercial vessel division, increased sales proportion of high-value-added vessel types, and growth in both operating revenue and operating profit within the engine and machinery division.