[Special Report] Trump Issues Executive Order to Rebuild Shipbuilding Industry... Korean Shipbuilding Stocks on the Rise

As the United States is expected to strengthen cooperation with South Korea in the shipbuilding industry, domestic shipbuilding stocks rose collectively on the 10th.

As of 10:28 a.m. that day, HD Hyundai Heavy Industries traded at 318,000 KRW, up 24,500 KRW (8.35%) from the previous trading day. HD Hyundai Korea Shipbuilding & Offshore Engineering (7.16%), Samsung Heavy Industries (6.21%), Hanwha Ocean (5.69%), HD Hyundai Mipo (4.92%), and HJ Heavy Industries (4.60%) also showed a collective upward trend.

On the 9th (local time), U.S. President Donald Trump signed an executive order on "Restoring America's Maritime Dominance," aiming to rebuild the U.S. shipbuilding industry from a national security perspective.

Since this executive order is intended to rebuild the U.S. shipbuilding industry and curb China's shipping industry, South Korean companies, which have been competing with China for the top two positions in shipbuilding, are expected to benefit.

Baek Gi-yeon, a researcher at Meritz Securities, said, "The executive order includes several important policy measures to restore U.S. dominance in the shipbuilding and shipping sectors. It aims to increase the U.S.-flagged fleet by establishing related funds," adding, "The U.S. Trade Representative (USTR) plans to announce details regarding sanctions on Chinese shipbuilding by the 17th."

He also noted, "For reference, the executive order includes provisions to impose port management fees and other charges on foreign cargo entering through the Canadian and Mexican borders," explaining that "this is interpreted as an early move to block loopholes that use Canada and Mexico to evade U.S. sanctions on Chinese vessels."