Hanwha Ocean Shares Soar Following Approval for Nuclear Submarine Construction
Hanwha Ocean Shares Surge on Nuclear Submarine Construction Approval
On October 29, 2025, at the ROK-U.S. summit, U.S. President Donald Trump, acceding to President Lee Jae-myung's request, officially approved the construction of nuclear-powered submarines for South Korea. This decision is expected to be a groundbreaking turning point for strengthening South Korea's defense capabilities and is having a significant impact on related industries and the stock market.
President Trump announced the approval via his social media platform, Truth Social, allowing South Korea to construct nuclear-powered submarines at the Philadelphia Naval Shipyard in the United States. This reaffirms the strong ROK-U.S. alliance and demonstrates the U.S.'s active support for South Korea's security. Notably, the Philadelphia Naval Shipyard was acquired by Hanwha Ocean last year, and this decision is a major factor driving the surge in Hanwha Ocean's stock price.
Immediately following the announcement of the nuclear-powered submarine construction approval, Hanwha Ocean's stock price soared, drawing intense market attention. Since acquiring the Philadelphia Naval Shipyard in the U.S., Hanwha Ocean has consistently strived to improve its technology and invest in facilities, and this approval for nuclear-powered submarine construction marks the culmination of those efforts. Securities analysts are highly optimistic about Hanwha Ocean's future growth potential and are issuing positive forecasts, including upward revisions to target stock prices. However, some caution against hasty investment, noting that actual submarine construction could take considerable time.
Chief of Naval Operations Admiral Kang Dong-gil predicted that if construction of nuclear-powered submarines begins, they could be deployed in the mid-2030s. This suggests that the construction of nuclear-powered submarines is not just an announcement but will proceed according to a concrete plan. The Navy expects that the introduction of nuclear-powered submarines will significantly enhance South Korea's naval power and secure an advantage in maritime security competition with neighboring countries. Admiral Kang also stated that the nuclear fuel used in the nuclear-powered submarines could be low-enriched uranium with an enrichment level of less than 20%. This emphasizes that it is unrelated to nuclear weapons development and is a decision that prioritizes safety.
Minister of National Defense Ahn Kyu-baek mentioned that at least four nuclear-powered submarines would be necessary to operate them effectively. This emphasizes that a certain level of force is required to achieve a substantial naval power enhancement effect through the introduction of nuclear-powered submarines. The Ministry of National Defense is expected to concretize the nuclear-powered submarine introduction plan while comprehensively reviewing necessary budget acquisition and technological cooperation measures. As the introduction of nuclear-powered submarines is a project involving enormous investments, it is pointed out that it is important to build public consensus and promote transparent project implementation.
The approval for nuclear-powered submarine construction at this ROK-U.S. summit is not only a crucial opportunity to enhance the Republic of Korea Navy's power but is also regarded as a meaningful event that reaffirms the strength of the ROK-U.S. alliance. Close cooperation and effort between the government and related organizations will be necessary to ensure that the nuclear-powered submarine construction project proceeds without a hitch.
