Corporate Logo(source: hanwhaocean.com)
Shares of South Korean shipbuilders rebounded in early trading on October 15, recovering from the previous day’s losses triggered by concerns over escalating U.S.-China trade tensions. Analysts said China’s sanctions against Hanwha Ocean (042660)’s U.S. subsidiaries would have minimal impact on domestic shipbuilding operations.
According to the Korea Exchange, Hanwha Ocean was trading at 104,700 won as of 9:04 a.m., up 1.55 percent from the previous session. The stock had fallen 6.76 percent the day before but showed signs of recovery within a day.
Other major shipbuilders also advanced, with HD Hyundai Heavy Industries (329180) rising 0.30 percent and Samsung Heavy Industries (010140) gaining 0.71 percent.
On the previous day, the Chinese government announced sanctions banning all transactions with five of Hanwha Ocean’s U.S. subsidiaries—Hanwha Shipping, Hanwha Philly Shipyard, Hanwha Ocean USA International, Hanwha Shipping Holdings, and HS USA Holdings. Beijing said the measure was in response to these entities’ alleged cooperation with a U.S. Section 301 investigation into maritime, logistics, and shipbuilding industries.
Under the sanctions, Chinese companies and individuals are prohibited from engaging in business or partnerships with the named entities.
The announcement initially fueled worries that South Korean companies involved in the U.S.-led “Make America’s Shipbuilding Great Again” (MASGA) initiative could be caught in the crossfire of the growing trade conflict, dragging shipbuilding stocks lower on October 14.
However, analysts now see the practical impact of the sanctions on Korean shipbuilders as limited, prompting a rebound in the sector.
Jung Dong-ik, an analyst at KB Securities, said, “We believe the impact of China’s sanctions on Hanwha Group or the Korean shipbuilding industry will be negligible. Among the five sanctioned entities, only Hanwha Shipping and Hanwha Philly Shipyard are operational, and neither has any material or personnel links to China.”
Lee Ji-ni, an analyst at Daishin Securities, added, “While Korean shipbuilders source about 20–30 percent of their steel plates from China, Hanwha Philly Shipyard’s 10 MR product carriers are designed for U.S. domestic routes, meaning the shipyard uses steel sourced from the U.S., Canada, and Mexico rather than China. As a result, the impact should be minimal.”
Some analysts even suggested that heightened U.S.-China tensions could turn into an opportunity for South Korean shipbuilders.
Kim Yong-min, an analyst at Yuanta Securities, said, “If these sanctions expand into a broader shipbuilding and maritime dispute between the U.S. and China, Korean shipbuilders could actually benefit by taking on the role of strategic partners to the U.S.”
He continued, “China currently holds about 60 percent of the global shipbuilding market. Ironically, that overwhelming market share is precisely why the USTR can justify imposing port penalties to target Chinese shipbuilders. In contrast, the U.S. is not a major player in either shipbuilding or maritime transport, which makes Korean companies the most visible targets for symbolic sanctions from China.”
Kim concluded, “Given Korea’s increasing prominence in the maritime power competition between Washington and Beijing, China’s latest move can be interpreted as a sign of growing unease about Korea’s rising influence in the global shipbuilding industry.”
*[KOSPI]Hanwha Ocean(042660) is a comprehensive shipbuilding and marine specialized company that constructs various types of vessels such as LNG carriers, tankers, container ships, and LPG carriers, as well as special-purpose vessels including submarines, destroyers, rescue vessels, and patrol boats. Market capitalization is 31.681 trillion won(as of October 14, 2025, closing price).
Corporate Logo(source: hanwhaocean.com)
Shares of South Korean shipbuilders rebounded in early trading on October 15, recovering from the previous day’s losses triggered by concerns over escalating U.S.-China trade tensions. Analysts said China’s sanctions against Hanwha Ocean (042660)’s U.S. subsidiaries would have minimal impact on domestic shipbuilding operations.
According to the Korea Exchange, Hanwha Ocean was trading at 104,700 won as of 9:04 a.m., up 1.55 percent from the previous session. The stock had fallen 6.76 percent the day before but showed signs of recovery within a day.
Other major shipbuilders also advanced, with HD Hyundai Heavy Industries (329180) rising 0.30 percent and Samsung Heavy Industries (010140) gaining 0.71 percent.
On the previous day, the Chinese government announced sanctions banning all transactions with five of Hanwha Ocean’s U.S. subsidiaries—Hanwha Shipping, Hanwha Philly Shipyard, Hanwha Ocean USA International, Hanwha Shipping Holdings, and HS USA Holdings. Beijing said the measure was in response to these entities’ alleged cooperation with a U.S. Section 301 investigation into maritime, logistics, and shipbuilding industries.
Under the sanctions, Chinese companies and individuals are prohibited from engaging in business or partnerships with the named entities.
The announcement initially fueled worries that South Korean companies involved in the U.S.-led “Make America’s Shipbuilding Great Again” (MASGA) initiative could be caught in the crossfire of the growing trade conflict, dragging shipbuilding stocks lower on October 14.
However, analysts now see the practical impact of the sanctions on Korean shipbuilders as limited, prompting a rebound in the sector.
Jung Dong-ik, an analyst at KB Securities, said, “We believe the impact of China’s sanctions on Hanwha Group or the Korean shipbuilding industry will be negligible. Among the five sanctioned entities, only Hanwha Shipping and Hanwha Philly Shipyard are operational, and neither has any material or personnel links to China.”
Lee Ji-ni, an analyst at Daishin Securities, added, “While Korean shipbuilders source about 20–30 percent of their steel plates from China, Hanwha Philly Shipyard’s 10 MR product carriers are designed for U.S. domestic routes, meaning the shipyard uses steel sourced from the U.S., Canada, and Mexico rather than China. As a result, the impact should be minimal.”
Some analysts even suggested that heightened U.S.-China tensions could turn into an opportunity for South Korean shipbuilders.
Kim Yong-min, an analyst at Yuanta Securities, said, “If these sanctions expand into a broader shipbuilding and maritime dispute between the U.S. and China, Korean shipbuilders could actually benefit by taking on the role of strategic partners to the U.S.”
He continued, “China currently holds about 60 percent of the global shipbuilding market. Ironically, that overwhelming market share is precisely why the USTR can justify imposing port penalties to target Chinese shipbuilders. In contrast, the U.S. is not a major player in either shipbuilding or maritime transport, which makes Korean companies the most visible targets for symbolic sanctions from China.”
Kim concluded, “Given Korea’s increasing prominence in the maritime power competition between Washington and Beijing, China’s latest move can be interpreted as a sign of growing unease about Korea’s rising influence in the global shipbuilding industry.”
*[KOSPI]Hanwha Ocean(042660) is a comprehensive shipbuilding and marine specialized company that constructs various types of vessels such as LNG carriers, tankers, container ships, and LPG carriers, as well as special-purpose vessels including submarines, destroyers, rescue vessels, and patrol boats. Market capitalization is 31.681 trillion won(as of October 14, 2025, closing price).