South Korea’s HD HHI and HD Hyundai Mipo make power move with merger decision

South Korea’s HD Korea Shipbuilding & Offshore Engineering (HD KSOE) on Wednesday (27 August) announced that it is restructuring its shipbuilding business to enhance global competitiveness and expand orders in Korea’s shipbuilding and defense sectors, as the Make American Shipbuilding Great Again (MASGA) project is set to go into full swing.

HD KSOE, HD Hyundai Heavy Industries (HHI), and HD Hyundai Mipo (HMD) each held board meetings, where HHI and HMD approved a merger agenda. 

HHI and HMD are subsidiaries of HD KSOE, which is HD Hyundai’s intermediate holding company.

Following an extraordinary general meeting and merger review process, the two companies will relaunch this December as the consolidated HHI.

“This restructuring reflects our strategic vision to broaden markets and strengthen shipbuilding. With the launch of the consolidated entity, we will drive market expansion and secure unrivaled technologies to lead the future shipbuilding industry,” said an HD KSOE official.

The company also noted that China and Japan, Korea’s key competitors, have also recently completed mergers between their respective top shipbuilders to strengthen competitiveness. 

It said the launch of HHI stands out as a merger between the world’s leading large and mid-sized shipbuilders, which is expected to significantly expand overall capacity and market reach.

In addition, HD KSOE, together with HHI, will establish a new overseas business entity within its shipbuilding division. 

“In particular, the merger is set to provide HHI with a major opportunity to strengthen its competitiveness in the defense sector, which has been drawing increasing global attention,” it added. 

Scheduled to be established in Singapore this December, the new entity will serve as a regional hub overseeing overseas production sites such as HD Hyundai Vietnam Shipbuilding, HD Hyundai Heavy Industries Philippines, and HD Hyundai Vina (tentative name). It will manage overseas operations including new yard development and business cooperation.

“This move is aimed at regaining market share in the commercial ship sector—such as bulk carriers and tankers—where Korean shipbuilders are struggling against Chinese rivals. It also seeks to streamline decision-making processes to accelerate overseas business expansion,” the company added. 

Photo credit: HD Hyundai
Published: 1 September, 2025