[Special Stock] Expectations for Korea-U.S. Cooperation Rise... Shipbuilding Stocks Rally Together

Shipbuilding Stocks Surge on Hopes for Korea-U.S. Tariff Talks
HD Hyundai Mipo Leads Gains with Over 5% Increase

On the morning of May 21, shipbuilding stocks showed simultaneous strength in early trading. This is interpreted as a revival of buying sentiment, as expectations for cooperation in the shipbuilding sector have grown following the start of working-level tariff negotiations between the South Korean and U.S. governments.

As of 9:44 a.m. on this day, shares of HD Hyundai Mipo were trading at 182,700 won on the Korea Exchange, up 5.30% from the previous trading day. After opening at 174,100 won, the stock has been on an upward trajectory.

In addition, Samsung Heavy Industries was trading at 14,870 won, up 4.89% from the previous session, and HD Korea Shipbuilding & Offshore Engineering was up 4.66% at 292,000 won. HJ Shipbuilding & Construction (up 3.08%), HD Hyundai Heavy Industries (up 3.02%), and Hanwha Ocean (up 2.45%) were also all rising.

A South Korean government delegation led by Jang Sunggil, Director-General for Trade Policy at the Ministry of Trade, Industry and Energy, arrived in Washington, D.C., on May 20 (local time) to coordinate the issue of reciprocal tariffs imposed by the Donald Trump administration. The delegation is scheduled to hold working-level trade consultations with officials from the United States Trade Representative (USTR) over a three-day period.

The South Korean government aims to reduce as much as possible the 25% reciprocal tariffs imposed on South Korea by the Trump administration, as well as item-specific tariffs of 25% on steel, aluminum, and automobiles imposed globally. In this process, cooperation in the shipbuilding industry is expected to be mentioned as a key bargaining chip.