Hanwha Ocean shares jump 10% after Trump says firm to build warships for U.S. Navy

Shares of South Korean firm Hanwha Ocean surged 10% Tuesday after U.S. President Donald Trump announced that the firm would help build new frigates for the country’s Navy.

Speaking at a press conference, Trump said that the warships will be built at the Hanwha Philly Shipyard in Philadelphia, acquired by the South Korean company in 2024, and in which it has pledged to invest $5 billion as part of South Korea’s $150 billion shipbuilding pledge.

The shipbuilding pledge is part of the broader U.S.-South Korea trade deal that saw tariffs reduced on South Korean exports to 15%, in exchange for a $350 billion investment pledge from Seoul, among other concessions.

Hanwha Ocean is one of South Korea’s major shipbuilding firms, having expertise in building commercial ships such as LNG carriers, as well as and military naval platforms including submarines and surface vessels.

South Korean defense stocks have been on a roll this year, with major defense players such as Hanhwa Aerospace and Hyundai Rotem gaining over 170% and 270%, respectively year to date. Hanhwa Ocean has surged more 220% so far this year.

Last week, the U.S. Navy announced the FF(X) class of ships — smaller combatant ships — which it said will complement larger, multi-mission warships and enhance operational flexibility around the globe. Secretary of the Navy John Phelan said the new frigate class would be part of Trump’s envisioned “Golden Fleet.”

Trump on Monday stateside said that the U.S. Navy will build two new “Trump-class” battleships, and may expand the count to as much as 25 such ships.

The U.S. president described the ships as “some of the most lethal surface warfare ships,” adding that the they will “help maintain American military supremacy, [and] inspire fear in America’s enemies all over the world.”

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, according to the U.S. President.