The Shares of Hanwa Ocean rose by 10%, followed by the US President’s remarks on its involvement in his ambitious ‘Golden Fleet’ project for the US Navy. The South Korean firm will build FF(X) class ships at the Hanwha Philly Shipyard in Philadelphia. The announcement gave further momentum to the South Korean defense stocks, which have shown a significant surge amid growing US-South Korea cooperation.
Inside Hanwha Ocean’s Philly Shipyard Expansion
Hanwha Ocean is one of the “Big Three” in South Korea’s world-class shipbuilders, alongside HD Hyundai Industries and Samsung Heavy Industries. Hanwha’s stocks have outperformed the competitors in 2025 as its US expansion and role in Trump’s “Golden Fleet” continue to drive the share prices up.
Hanwha captured attention in 2024 as it acquired the Philly Shipyard in Philadelphia, USA. Philly Shipyard has been delivering commercial ships that are compliant with the Jones Act since 2000. Their deliveries included 22 product tankers, 6 container vessels, 2 Aframax tankers, 3 repair vessels, and 1 National Security Multi-Mission Vessel (NSMV).
Philly Shipyard has built around 50% of the US’s largest commercial vessels. This established supply chain and operational efficiency will serve Hanwha Oceans to build and deliver ships at a faster rate. The CEO of Hanwha Systems, Sung-Chul Eoh, remarked that “The opportunity to collaborate with Philly Shipyard, a significant shipbuilder with a storied history, is an exciting strategic opportunity that will allow Hanwha Systems to deploy its state-of-the-art naval systems and associated technologies in the U.S. market.”
In short, Philly Shipyard’s existing infrastructure will set the right stage for the $100 million investment plan the firm plans on rolling out in the coming years. This will mark the transformation of the company from a commercial vessel-focused ship builder to a key defense partner of the US Navy.
Hanwha has already proved its reputation through world-class LNG carriers, very large gas carriers (VLGC), very large crude oil carriers (VLCC), and container ships. Moreover, Trump has described Hanwha as a “good company,” suggesting further cooperation with the company for his “Golden Fleet” ambitions.
The Golden Fleet and South Korean Partnership
“They’ll be the fastest, the biggest, and by far, 100 times more powerful than any battleship ever built,” Trump said in a press conference where he shared updates on his plans to revamp the US Navy. The plan included building 25 “Trump-class” battleships that would integrate hypersonic missiles, next-generation radars, directed-energy lasers, and nuclear-armed cruise missiles. He has already approved the construction of 2 and is expected to approve the rest in the following years.
The project clearly aims to restore American Naval supremacy amid China’s growing military strength. (The Chinese Navy has already surpassed America in number, as they have 370 warships as compared to America’s 290 ships.) And where does South Korea come in? U.S. shipyards face challenges such as labour shortage, outdated tech, supply chain delays, and procedural delays, which hinder them from matching the Chinese progress.
South Korean firms offer a solution to these challenges as they are fast, efficient, proven, and lead in next-generation technologies used in warships. Although the Jones Act restricts US vessels from being foreign-built, Investment in the USA provides an exception that allows non-US firms to build ships in the USA. By acquiring Philly Shipyard in Philadelphia, Hanwha is now able to build Jones Act-compliant vessels.
Analysts from Breaking Defense estimate that a battleship in Trump’s “Golden Fleet” can cost between $4-$4.5 billion per ship. This means that 25 “Trump-class” warships and the accompanying frigates (medium-sized ships that focus on agility and flexibility) would be demanding staggering defense budgets that will exceed hundreds of billions of dollars in the coming decades.
