[Special Stock] Hanwha Ocean Rises on News of Government Considering Direct Guarantee for $1,600 Trillion US Navy MRO

Hanwha Ocean is showing strong performance. This is interpreted as being influenced by news that the government is considering a plan to directly guarantee the quality of the U.S. Navy ship Maintenance, Repair, and Overhaul (MRO) project.

As of 1:38 PM on the 6th, Hanwha Ocean is trading at 63,700 KRW, up 6.17% compared to the previous day.

According to industry sources, the government is reviewing a quality assurance provision plan to strengthen the export competitiveness of the domestic shipbuilding industry's defense sector. Currently, domestic shipbuilders only perform MRO on some naval auxiliary ships, but if the technological capabilities of the Korean shipbuilding industry are recognized, it is expected that export expansion will be possible in various defense items beyond auxiliary ships.

Furthermore, if the government's quality assurance is added, it is analyzed that the growth in sales of special ships, a core business of Hanwha Ocean's defense sector, will accelerate. The U.S. Navy's MRO market size reaches 20 trillion KRW annually, and depending on future naval power enhancement plans, there is also talk of the possibility of orders worth 1,600 trillion KRW for MRO, combat ships, and naval auxiliary ships.