[비즈한국] Attention is focused on whether Hanwha Ocean042660 can achieve a 'quantum jump.' The 2025 Gyeongju APEC (Asia-Pacific Economic Cooperation) summit is raising expectations not only for resolving external uncertainties but also for expanding its submarine business.
The White House stated in a fact sheet on the economic and trade agreement from the U.S.-China summit on the 1st (local time) that “China will withdraw retaliatory measures against the U.S. Section 301 investigation into its dominance in marine, logistics, and shipbuilding industries, and will lift sanctions imposed on several shipping companies.” This is interpreted as a result of the summit held on the 30th of last month between U.S. President Donald Trump and Chinese President Xi Jinping. Responding to China’s move, the U.S. government announced that it would “suspend the implementation of response measures under the Section 301 investigation aimed at China’s dominance in marine, logistics, and shipbuilding for one year, starting November 10, 2025,” adding that “during this period, the U.S. will continue negotiations with China while continuing historic cooperation with South Korea and Japan to promote the revival of the U.S. shipbuilding industry.”
Because of this, expectations are rising that the sanctions imposed by the Chinese government on Hanwha Ocean’s five U.S. subsidiaries (Hanwha Shipping, Philly Shipyard, Hanwha Ocean USA International, Hanwha Shipping Holdings, and HS USA Holdings) will also be lifted. On the 14th of last month, China's Ministry of Commerce designated Hanwha Ocean's subsidiaries as sanctioned entities based on its 'Anti-Foreign Sanctions Law,' prohibiting them from conducting transactions with Chinese organizations and individuals. These sanctions were China’s retaliation against the ‘Section 301 investigation measures’ introduced by the U.S. to keep the Chinese shipbuilding and shipping industries in check and to boost domestic U.S. shipbuilding capabilities.
Hanwha Ocean is considered to have not only resolved uncertainties but also laid the groundwork for business expansion through this APEC summit. President Trump wrote on his personal social media platform, Truth Social, on the 30th of last month, “We will build South Korea's nuclear-powered submarines at the Philly Shipyard,” adding, “The U.S. shipbuilding industry will see a revival.” This came after President Lee Jae-myung requested during the Korea-U.S. summit the previous day that the U.S. “make a decision to allow the supply of fuel for nuclear-powered submarines,” to which President Trump granted approval. Furthermore, by specifically mentioning that nuclear-powered submarines should be built at the Philly Shipyard—which was jointly acquired by Hanwha Ocean and Hanwha Systems272210—an opportunity has opened for Hanwha Ocean to further enhance its submarine construction capabilities.
Hanwha Ocean is also raising expectations for winning a contract for the next-generation submarine project being pursued by Canada. Taking advantage of the APEC summit, Canadian Prime Minister Mark Carney, who visited South Korea, toured the Hanwha Ocean Geoje shipyard on the 30th of last month along with Canadian Minister of National Defence David McGuinty and others to inspect the 3,600-ton Jang Bogo-III class submarine. Canada is carrying out a project to introduce 8 to 12 3,000-ton class submarines with an investment of up to 60 billion Canadian dollars (60 trillion won), and a consortium of Hanwha Ocean and HD Hyundai Heavy Industries329180, along with Germany’s TKMS, have been named as the final qualified candidates.