Hanwha Ocean targets $2.91 billion in global naval ship revenue by 2030

South Korean shipbuilder seeks U.S. Navy repair orders and global defense exports as part of long-term growth plan.

Steve SK Jeong, head of the naval ship international business department at Hanwha Ocean, poses for a photo following an interview with Reuters in Seoul, South Korea, on May 2, 2025. Photo by Kim Hong-Ji/Reuters

By Anna Fadiah and Hayu Andini

South Korean shipbuilding giant Hanwha Ocean is setting its sights on capturing 4 trillion won ($2.91 billion) in overseas naval ship revenue by 2030, as it accelerates its expansion into global defense markets and deepens its collaboration with the U.S. Navy. Hanwha Ocean targets $2.91 billion in global naval ship revenue by 2030, underscores the company’s long-term strategy to diversify beyond domestic demand by strengthening its international footprint.

Formerly known as Daewoo Shipbuilding, Hanwha Ocean is among the largest shipbuilders in the world, boasting an impressive $31.43 billion order book as of March 2025. With South Korea already a global powerhouse in commercial shipbuilding, Hanwha is leveraging its expertise to transition into high-value military projects for foreign clients, including the United States, Canada, and Poland.

Expanding U.S. presence with Navy contracts

The shipbuilder’s ambitions received a boost in 2024 when it secured its first-ever maintenance and overhaul contracts from the U.S. Navy. These marked a critical entry point into the American defense ecosystem, which has long been difficult for foreign firms to penetrate due to protectionist regulations like the Byrnes-Tollefson Amendment. This provision of the U.S. Department of Defense Appropriations Act prohibits non-U.S. shipbuilders from constructing naval vessels for the U.S. military, even if they have domestic operations.

Steve SK Jeong, who leads the Naval Ship Global Business division at Hanwha Ocean, emphasized that while the initial contracts were not highly profitable, the opportunity to learn and adapt to the U.S. Navy’s requirements was strategically invaluable.

"I think we may be the biggest shipyard in the world that has taken on these maintenance, repair, and overhaul orders from the U.S. Navy," Jeong told Reuters. "It is not very profitable, but learning the process of working with the U.S. Navy is valuable, which will help if we win newbuild orders."

Jeong added that Hanwha Ocean hopes to secure a “double-digit number” of U.S. Navy repair contracts before the end of the decade, further integrating itself into the American defense supply chain.

Upgrading U.S. operations and transplanting technology

To support this initiative, Hanwha Ocean acquired the Philadelphia Shipyard in 2024, aiming to gain a local foothold in the American market. However, Jeong acknowledged that replicating South Korea’s advanced shipbuilding efficiency on U.S. soil is not a straightforward task.

"The U.S. shipbuilding industry hasn't had to compete very much. Facilities are old, and there's a shortage of technicians," Jeong noted. "We are looking to modernize facilities, train and equip workers, and bring in our manufacturing process that can build the same ship in, I think, two-thirds the time or less as that of a U.S. shipyard."

Obtaining the necessary license to construct U.S. Navy vessels at the Philadelphia Shipyard remains a long-term goal, but in the meantime, Hanwha is focused on introducing advanced manufacturing techniques, including automation and improved workforce training, to boost output and efficiency.

Scaling up production at home for global reach

While the company looks to build capabilities abroad, it is simultaneously scaling operations at home in South Korea. By 2029, Hanwha plans to expand its naval production capacity to simultaneously build five submarines and three surface vessels, up from its current capacity of two submarines and two surface ships.

The South Korean Navy has long been a key customer for Hanwha, which has constructed 17 submarines for the nation since 1987. However, the country’s low birthrate and aging population pose long-term challenges to domestic military demand. In response, Hanwha Ocean has turned its attention to international markets to drive future growth.

Global expansion strategy in defense exports

Hanwha’s overseas naval strategy includes targeting high-value submarine and surface ship contracts in countries such as Poland, Canada, and Thailand. The company is actively bidding to export submarines to Poland and Canada and aims to deliver a new frigate to the Royal Thai Navy.

In addition to those marquee bids, Hanwha is courting clients across the Middle East, Southeast Asia, South America, and North Africa. Jeong explained that the goal is to secure a sustained stream of foreign military orders that will bring the company’s international defense revenue from 1.05 trillion won in 2024 to 4 trillion won by 2030—nearly quadrupling its current figures.

These efforts align with broader geopolitical trends. The U.S., under former President Donald Trump and potentially again in the future, has emphasized restoring domestic shipbuilding capacity. Trump has stated that he plans to invest heavily in shipbuilding, motivated by concerns over China’s growing dominance in maritime defense and trade. These policies could create additional opportunities for strategic partnerships between U.S. and allied shipbuilders like Hanwha.

Regulatory and competitive hurdles remain

Despite its ambitious targets, Hanwha Ocean faces steep challenges in reaching its $2.91 billion global revenue goal. Beyond the Byrnes-Tollefson Amendment, global military shipbuilding is a highly competitive sector dominated by legacy defense contractors and rising players from China, Russia, and Europe.

Moreover, transplanting South Korea’s shipbuilding methodologies into the U.S. environment will require more than just equipment—it will demand cultural, regulatory, and labor force adjustments.

Still, Jeong and his team remain optimistic. By combining South Korea’s fast-paced, high-quality production systems with strategic U.S. partnerships, Hanwha believes it can offer something few others can: a technologically advanced, globally diversified naval shipbuilding operation ready to serve both allies and emerging markets.

Future outlook and strategic importance

Hanwha Ocean’s aggressive international expansion plan underscores a broader transformation in the global defense manufacturing landscape. As naval forces around the world upgrade fleets and expand submarine capabilities in response to maritime threats, demand for trusted and efficient shipbuilders is growing.

If successful, the company’s initiative could make it a cornerstone of a U.S.-South Korea industrial defense alliance and a significant global competitor to European and Chinese shipbuilders.

Hanwha Ocean targets $2.91 billion in global naval ship revenue by 2030—reflects not only an ambitious financial objective but also a strategic pivot toward global leadership in defense production. With a blend of South Korean innovation, U.S. market access, and global military demand, Hanwha Ocean is charting a course for expansion that could reshape the future of international shipbuilding.