05-08-2025
Hanwha outpaces chaebol rivals in market cap growth
Hanwha Group has witnessed the biggest increase in corporate value among South Korea's top 10 conglomerates this year, highlighting its key role in the country's recent trade negotiations with the US.
As of Aug. 1, the market capitalization of Hanwha Group and its 12 listed subsidiaries on the nation's main bourse, the Kospi exchange, skyrocketed 177.5 percent to 120.7 trillion won ($86.9 billion) compared to the end of 2024.
This marks the highest growth rate among South Korea's 10 biggest corporate groups. Following Hanwha, HD Hyundai's market cap grew 51.7 percent and SK Group's rose 35.7 percent in the same period, respectively.
Industry watchers indicated that Hanwha Group's surge in corporate value is primarily driven by its defense and shipbuilding affiliates. As of Aug.1, the combined market cap of Hanwha Aerospace, Hanwha Ocean and Hanwha Systems achieved 95.7 trillion won.
Notably, Hanwha Aerospace saw its stock price soar by 245.1 percent, reaching 939,000 won on Aug. 1, up from 326,000 won at the close of last year. The defense subsidiary has been accelerating its push into the rapidly emerging US defense industry. It is vying for the US Army's self-propelled howitzer (SPH-M) program, with plans to invest about $1 billion by 2028 to set up a production facility for 155 millimeter artillery propellant charges in the US.
Hanwha Ocean's stock price rose by 200.1 percent, from 37,350 won to 117,400 won over the same period, following the news of its pivotal role in aiding the Korean government's recent tariff negotiations with the US. In particular, it surpassed tech giant Naver to rank 13th in market cap at the company level with 36 trillion won. When Hanwha Group acquired Hanwha Ocean — formerly Daewoo Shipbuilding & Marine Engineering — in 2023, the company was valued at 3 trillion won.
Hanwha Ocean, the only Korean shipbuilder with a shipyard in the US, has been in the spotlight for providing leverage for Korea in offering a strategic advantage in negotiations to lower tariffs on Korean exports from 25 percent to 15 percent.
Underscoring the influence of the US in the global defense industry, Hanwha Group established Hanwha Global Defense in Washington in May to oversee international operations for Hanwha Aerospace, Hanwha Ocean and Hanwha Systems.
'While it is disappointing that we lost an FTA advantage, major companies like Hanwha partly contributed to completing the trade negotiations with the US within the deadline of (Aug. 1),' said Kim Dae-jong, a business professor at Sejong University.
