The shares of South Korean firm Hanwha Ocean shot up 10 percent on Tuesday, as U.S. President Donald Trump announced that the company would assist in constructing new frigates for the country’s Navy.
During a press conference, Trump announced that the warships would be constructed at the Hanwha Philly Shipyard, located in Philadelphia, which was acquired by the South Korean company in 2024. The company had vowed to invest $5 billion as part of South Korea’s $150 billion shipbuilding pledge.
This shipbuilding commitment is included in the broad U.S.-South Korea trade agreement that saw the tariffs on South Korean exports cut by 15 percent, in promising a $350 billion investment by Seoul, among other concessions.
Hanwha Ocean is a major shipbuilding company in South Korea that has specialized in the construction of commercial vessels like LNG carriers and in military naval platforms, including submarines and surface vessels.
Defense shares in South Korea have been on a tear this year, as defense giants like Hanhwa Aerospace and Hyundai Rotem have surged by over 170 percent and 270 percent, year-to-date. Hanhwa Ocean has increased further by 220 percent in the current year.
The U.S. Navy announced the FF(X) class of ships last week, smaller combatant ships, which it claimed will complement the larger, multi-mission warships and increase its ability to operate flexibly around the world.
Secretary of the Navy John Phelan declared that the new type of frigates would be included as part of Trump’s envisioned “Golden Fleet.” Trump stated on Monday stateside that the U.S. Navy will build two new “Trump-class” battleships, and may extend the count to as many as 25 such ships.
The U.S. president highlighted the ships as “some of the most lethal surface warfare ships,” adding that they will “help maintain American military supremacy, [and] inspire fear in America’s enemies all over the world.”
According to the U.S. President, describing them as “the fastest, the biggest, and by far, 100 times more powerful than any battleship ever built,” the Trump-class battleships are envisioned to be equipped with hypersonic weapons, lasers, cruise missiles, and nuclear weapons.
