[Market Focus] Shipbuilding Stocks Surge on Korea-US Tariff Deal... Hanwha Ocean Up Over 8%

With the conclusion of the South Korea-US trade negotiations, shipbuilding stocks, including Hanwha Ocean, are showing strength in the domestic stock market on the morning of July 31.

As of 9:45 a.m. on this day, Hanwha Ocean's stock price is trading at 107,700 won per share, up 8.79% from the previous session. HD Hyundai Heavy Industries is also up 4.46%, trading at 492,000 won. HJ Shipbuilding & Construction and HD Korea Shipbuilding & Offshore Engineering are both showing gains of around 2%.

This is analyzed as a result of the news that the South Korea-US trade negotiations have been concluded. US President Donald Trump announced at the White House, after meeting with the South Korean trade negotiation delegation, that South Korea would lower the reciprocal tariff rate on US goods from the current 25% to 15% in exchange for conditions such as investing $350 billion (about 487 trillion won) in the United States. The 15% reciprocal tariff rate is the same level as that applied to Japan and the European Union (EU).

In particular, as it was reported that $150 billion, a significant portion of the $350 billion US investment fund, will be operated as a dedicated fund for shipbuilding industry cooperation, buying activity has been concentrated on shipbuilding stocks. President Lee Jaemyung announced the conclusion of the tariff negotiations with the US on Facebook that day, stating that the dedicated shipbuilding cooperation fund will provide strong support for Korean companies to enter the US shipbuilding industry.