HD Hyundai Heavy Industries will merge with its affiliate HD Hyundai Mipo Dockyard in an absorption-type transaction approved by both boards on August 27, 2025.
HD Hyundai Heavy Industries will remain as the surviving company, while HD Hyundai Mipo Dockyard will be delisted once the deal is complete.
The companies said the integration is intended to strengthen naval and special-purpose shipbuilding capabilities and improve bid competitiveness.
According to the plan, one common share of HD Hyundai Mipo Dockyard will be exchanged for 0.4059146 newly issued shares of HD Hyundai Heavy Industries.
The record date for eligible shareholders is September 12, 2025. An extraordinary shareholders’ meeting is scheduled for October 23, 2025, with the legal merger registration on December 1, 2025 and the listing of new HD Hyundai Heavy Industries shares on December 15, 2025.
Dissenting shareholders may exercise appraisal rights from October 23 to November 12, 2025. The appraisal reference prices are ₩462,626 per HD Hyundai Heavy Industries share and ₩192,695 per HD Hyundai Mipo Dockyard share. If appraisal demands exceed ₩1.5 trillion, the merger agreement may be terminated.
In a statement, the group described the deal as “a strategic step for ‘a broader market and a stronger shipbuilder’” and linked the timing to an expected rise in defence demand “ahead of the full-scale launch of the MASGA project following the Korea-U.S. summit.”
The integrated company is targeting ₩10 trillion in annual defence revenue by 2035.
To support overseas expansion, the parent company HD Korea Shipbuilding & Offshore Engineering intends to establish a new investment entity in Singapore in December to manage overseas yards in Vietnam and the Philippines and to consider additional capacity.
On the day of the announcement, August 27, HD Hyundai Heavy Industries shares closed up 11.32 percent at ₩521,000, while HD Hyundai Mipo Dockyard rose 14.59 percent to ₩216,000.
HD Hyundai Heavy Industries Co., Ltd. is a South Korean shipbuilding company headquartered in Ulsan and is a subsidiary of HD Korea Shipbuilding & Offshore Engineering. It engages in building commercial and military vessels, offshore plants, and related engineering services.
HD Hyundai Mipo Dockyard Co., Ltd. is a South Korean shipbuilding company also based in Ulsan and a subsidiary of HD Korea Shipbuilding & Offshore Engineering. It specializes in constructing medium-sized commercial vessels, including product and chemical tankers, container ships and gas carriers.
HD Korea Shipbuilding & Offshore Engineering Co., Ltd. is the intermediate shipbuilding holding company within HD Hyundai Group. It oversees multiple shipyards, including HD Hyundai Heavy Industries and HD Hyundai Mipo Dockyard, and manages domestic and overseas shipbuilding operations.