Hanwha Ocean

Hanwha Ocean Co., Ltd., formerly Daewoo Shipbuilding & Marine Engineering, is one of South Korea’s major shipbuilders and is commonly grouped with Hyundai and Samsung among the country’s “Big Three” shipbuilding companies. Its business combines commercial shipbuilding, specialized and offshore vessels, naval construction, submarines, and ship-repair services. The company operates from Geoje, a major shipbuilding center on South Korea’s southern coast, and serves international shipping companies, energy businesses, and governments. The company’s roots date to 1978, when Daewoo acquired the shipbuilding operation that later became Daewoo Shipbuilding & Marine Engineering, or DSME. Under the DSME name, it developed a broad portfolio ranging from container ships and LNG carriers to tankers, offshore facilities, and military vessels. Its commercial work included some of the world’s largest container ships. In 2011, A. P. Moller–Maersk ordered ten 18,000-container ships, followed by a second order for ten more. The vessels became associated with the Triple E class and represented a significant step in the development of ultra-large container shipping. DSME also became an important exporter of South Korean naval technology. In December 2011, it won a contract to build three submarines for Indonesia. The order was described as the largest single defense contract won by a Korean company at that time and marked South Korea’s first submarine export. The company subsequently built submarines and surface combatants for domestic and foreign customers, including Type 214 submarines, Jang Bogo-class vessels, Nagapasa-class submarines, and Dosan Ahn Changho-class boats. Its naval portfolio also includes destroyers, frigates, corvettes, and fleet-support ships. The business experienced a severe financial and governance crisis in the mid-2010s. South Korea’s Board of Audit and Inspection reported in 2016 that DSME’s accounts contained approximately 1.5 trillion won in accounting fraud. Trading in its shares was suspended, and the company recorded very large losses in 2015 and 2016. In March 2017, the South Korean government provided a large rescue loan intended to prevent bankruptcy. Separately, in 2017, reports emerged that North Korean hackers may have compromised the company and taken ship and submarine blueprints. Hanwha Group announced an agreement in December 2022 to acquire a controlling 49.3 percent stake in DSME for approximately 2 trillion won. The transaction was supported by the Korea Development Bank and was presented as part of an effort to strengthen the competitiveness of South Korea’s shipbuilding sector. Following the acquisition, the company adopted the Hanwha Ocean name. The rebranding linked the shipbuilder to Hanwha’s wider industrial, energy, defense, and aerospace portfolio while preserving its established shipbuilding capabilities. In the defense and sustainment market, Hanwha Ocean expanded its relationship with the United States Navy. In July 2024, it became the second South Korean shipbuilder, after Hyundai Heavy Industries, to sign a Master Ship Repair Agreement with the U.S. Navy’s Naval Supply Systems Command. The agreement qualified it to compete for U.S. Navy maintenance, repair, and overhaul work. In August 2024, the company won an MRO contract for USNS Wally Schirra, with work scheduled at its Geoje shipyard. Hanwha Ocean’s current positioning therefore combines large-scale commercial ship construction with increasingly prominent submarine, naval, and allied-fleet support activities.

Hanwha Ocean traces its shipbuilding history to 1978, when Daewoo acquired the operation that became Daewoo Shipbuilding & Marine Engineering. The business developed within South Korea’s export-oriented shipbuilding industry and eventually became one of the country’s three largest shipbuilders alongside Hyundai and Samsung. Its capabilities expanded from conventional commercial ships into large container vessels, LNG carriers, tankers, offshore projects, and military platforms. A major commercial milestone came in 2011, when A. P. Moller–Maersk ordered ten very large container ships with capacity of 18,000 containers each. A further ten were ordered later that year. The ships formed the Triple E class, reflecting the industry’s movement toward larger, more fuel-efficient container vessels. DSME also delivered specialized vessels for demanding environments. It built fifteen Arc7 icebreaking LNG carriers for Yamal LNG. These Yamalmax ships were designed for year-round Arctic operations and could break substantial ice while carrying liquefied natural gas from the Yamal Peninsula. Defense shipbuilding became another central part of the company’s identity. In 2011, DSME secured an Indonesian order for three submarines. The contract was significant both commercially and strategically because it represented South Korea’s first submarine export. The company later built a range of submarines and surface combatants, including Type 214 and Jang Bogo-class submarines, Indonesian Nagapasa-class submarines, Dosan Ahn Changho-class boats, destroyers, frigates, corvettes, and auxiliary ships. It also built four MARS fast fleet tankers for the United Kingdom’s Ministry of Defence; the vessels entered service in 2017. The company suffered a serious crisis during the middle of the 2010s. An audit finding announced in 2016 identified approximately 1.5 trillion won in accounting fraud. Share trading was suspended, while the company reported losses of roughly 3.3 trillion won in 2015 and 2.7 trillion won in 2016. In March 2017, a government-backed loan of approximately 2.9 trillion won was provided to help keep the business operating. The period also brought cybersecurity concerns, after reports that North Korean hackers may have taken company blueprints. Hanwha Group’s planned acquisition marked the next major turning point. Announced in December 2022, the transaction involved a controlling 49.3 percent stake valued at approximately 2 trillion won and received support from the Korea Development Bank. After the acquisition, DSME was renamed Hanwha Ocean. The new identity placed the shipbuilder within Hanwha’s broader industrial ecosystem, which includes defense, aerospace, energy, and manufacturing businesses. Since the rebranding, Hanwha Ocean has emphasized both its established commercial shipbuilding activities and its role as a defense contractor. In 2024, it signed a Master Ship Repair Agreement with the U.S. Navy’s Naval Supply Systems Command, enabling participation in U.S. Navy MRO work. It subsequently won a contract to maintain USNS Wally Schirra at Geoje. This move supports a strategy of expanding beyond new-build vessels into lifecycle support for allied naval fleets. Hanwha Ocean therefore occupies a hybrid position: it is a major commercial shipbuilder, a producer of advanced naval platforms, a submarine exporter, and an emerging provider of international naval sustainment services.

1. 2024U.S. Navy repair agreement and first MRO contract

   Hanwha Ocean signed a Master Ship Repair Agreement with NAVSUP and won maintenance work for USNS Wally Schirra.

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2. 2023Company renamed Hanwha Ocean

   Following Hanwha Group’s acquisition, Daewoo Shipbuilding & Marine Engineering adopted the Hanwha Ocean name.

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3. 2022Hanwha announces acquisition

   Hanwha Group announced an agreement to acquire a controlling stake in DSME.

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4. 2017Government-backed rescue financing

   A loan of approximately 2.9 trillion won was provided to help prevent DSME’s bankruptcy after major losses.

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5. 2016Accounting fraud finding

   South Korea’s Board of Audit and Inspection reported approximately 1.5 trillion won in accounting fraud in DSME’s books.

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6. 2012UK orders MARS fleet tankers

   The UK Ministry of Defence ordered four double-hulled fast fleet tankers for the Royal Fleet Auxiliary.

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7. 2011Maersk orders Triple E-class container ships

   Maersk ordered ten ultra-large container ships, followed by another ten later in the year.

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8. 2011First South Korean submarine export

   DSME won an Indonesian contract for three submarines, marking South Korea’s first submarine export.

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9. 1978Daewoo acquires the predecessor shipbuilding operation

   Daewoo acquired the operation that later became Daewoo Shipbuilding & Marine Engineering, establishing the corporate roots of Hanwha Ocean.

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A large South Korean shipbuilder combining commercial vessel construction, high-end LNG and container-ship engineering, naval shipbuilding, submarine exports, and allied-fleet maintenance.

• Triple E classContainer ships2011

  A series of ultra-large container ships built for A. P. Moller–Maersk. The vessels were designed around very high cargo capacity and represented the scale expansion of international container shipping in the early 2010s.

• Arc7 Yamalmax LNG carriersLNG carriers

  Icebreaking liquefied natural gas carriers built for Yamal LNG. Their Arc7 ice class enables year-round operations in Arctic waters and allows them to break thick sea ice while transporting LNG from Russia’s Yamal Peninsula.

• SubmarinesNaval vessels

  Hanwha Ocean’s submarine portfolio includes Type 214 boats, Jang Bogo-class vessels, Indonesian Nagapasa-class submarines, and Dosan Ahn Changho-class boats. The company serves both South Korean naval programs and international export customers.

• Surface combatantsNaval vessels

  The company has built destroyers, frigates, and corvettes for naval customers. Its recorded construction portfolio includes Gwanggaeto the Great-class destroyers, Chungmugong Yi Sun-sin-class destroyers, Daegu-class frigates, Ulsan-class frigates, and Donghae-class corvettes.

• MARS fleet tankersFleet auxiliary vessels2012

  Four double-hulled fast fleet tankers built for the United Kingdom’s Royal Fleet Auxiliary under a 2012 Ministry of Defence order. The vessels entered service in 2017 and support naval fleet logistics.

• Naval MRO servicesShip repair and maintenance2024

  Maintenance, repair, and overhaul services for naval and auxiliary vessels. The 2024 agreement with the U.S. Navy opened Hanwha Ocean’s Geoje facilities to eligible U.S. Navy repair work.

• 2024Entry into U.S. Navy MRO marketStrategy

  Hanwha Ocean sought to expand from new-build commercial and naval vessels into recurring maintenance and lifecycle-support work for allied fleets.

  What changed. The company signed a Master Ship Repair Agreement with Naval Supply Systems Command and later won an MRO contract for USNS Wally Schirra.

  Aftermath. Hanwha Ocean became eligible to compete for U.S. Navy repair work and began a maintenance project at its Geoje shipyard.

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• 2022Hanwha agrees to acquire controlling stake in DSMEM&A

  DSME had experienced financial distress and required government-backed support after major losses and accounting problems. The Korea Development Bank supported a transaction intended to improve the structure and competitiveness of South Korea’s shipbuilding industry.

  What changed. Hanwha Group announced an agreement to acquire a 49.3 percent controlling stake for approximately 2 trillion won.

  Aftermath. The shipbuilder was integrated into Hanwha Group and subsequently renamed Hanwha Ocean, aligning its commercial shipbuilding and naval businesses with Hanwha’s wider defense and industrial portfolio.

  Acquisition value. Approximately 2 trillion South Korean won (Announced December 2022)

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• 2017Alleged theft of shipbuilding blueprintsControversy

  Reports indicated that North Korean hackers may have compromised DSME in 2016 and stolen ship and submarine blueprints. The incident raised concerns about cybersecurity and the protection of defense-related technical information.

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• 2016DSME accounting fraudControversy

  South Korea’s Board of Audit and Inspection reported approximately 1.5 trillion won in accounting fraud in DSME’s books. The finding contributed to a wider financial crisis, trading suspension, and subsequent government support.

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• 2024Hanwha Ocean signs U.S. Navy Master Ship Repair Agreement

  Hanwha Ocean qualified to participate in U.S. Navy maintenance, repair, and overhaul work after signing a Master Ship Repair Agreement with Naval Supply Systems Command.

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• 2024Hanwha Ocean wins MRO contract for USNS Wally Schirra

  The company won a U.S. Navy auxiliary-ship maintenance contract, with approximately three months of work planned at its Geoje shipyard.

  Product launchOther
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• 2022Hanwha announces acquisition of controlling DSME stake

  Hanwha Group announced plans to acquire a 49.3 percent controlling stake in DSME for approximately 2 trillion won, with support from the Korea Development Bank.

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• 2017DSME receives government support after heavy losses

  After substantial losses and a suspension of share trading, DSME received a government-backed loan intended to prevent bankruptcy.

  BankruptcyRegulation
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• 2011Maersk orders first group of ultra-large Triple E container ships

  A. P. Moller–Maersk ordered ten 18,000-container ships from DSME, making the order one of the largest and most ambitious container-ship programs of its period.

  Product launchOther
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• 2011DSME wins major Indonesian submarine export contract

  DSME won a contract to build three submarines for Indonesia, described as the largest single defense contract awarded to a Korean company at the time and South Korea’s first submarine export.

  Product launchOther
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1. Hanwha Ocean