South Korean shipbuilding conglomerate HD Hyundai Group has joined South Korea’s elite club of conglomerates with a market capitalization exceeding 100 trillion won ($73 billion), becoming the fifth such business group to do so after Samsung, SK, Hyundai Motor and LG.
With additional tailwinds expected from US Navy contracts and overseas shipyard expansion, analysts expect the combined valuation of HD Hyundai Co. and its affiliates to climb further, solidifying HD Hyundai’s status not just as an industrial bellwether but as a strategic beneficiary of the global transition to clean energy and digital infrastructure.
The milestone underscores a remarkable 180% rally in the group’s market value over the past 17 months, fueled by a renaissance in global shipbuilding and booming demand for power equipment amid the rise of artificial intelligence.
(Graphics by Daeun Lee) According to financial information provider FnGuide Inc., the combined market capitalization of HD Hyundai Group’s 10 listed affiliates touched 102 trillion won during intraday trading on Wednesday.
Although affiliates’ shares dipped in the afternoon, closing at 97 trillion won, it marked the first time the group’s valuation has breached the symbolic threshold.
The surge has placed HD Hyundai Group firmly in Korea’s corporate top tier, displacing POSCO Holdings Inc.-led POSCO Group, the value of which has dwindled to 41 trillion won amid headwinds in the steel and battery markets.
Samsung Group led the pack with 535 trillion won in market capitalization, followed by SK Group’s 226 trillion won, Hyundai Motor Group’s 137 trillion won and LG Group’s 127 trillion won.
HD Hyundai Vice Chairman Chung Ki-sun speaks at CES 2023 SHIPBUILDING AT FULL STEAM
The conglomerate’s intermediate shipbuilding holding firm, HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE), is expected to post 3.57 trillion won in operating profit this year, over twelvefold its 2022 earnings, as order books swell and vessel prices climb to their highest since September 2008.
HD KSOE’s three main shipyards – HD Hyundai Heavy Industries Co., HD Hyundai Mipo Co. and HD Hyundai Samho Co. – are operating at near full capacity, buoyed by surging demand for high-value vessels such as LNG carriers.
With global shipping firms racing to meet 2050 carbon neutrality targets, orders for eco-friendly vessels powered by LNG, methanol and hydrogen have soared.
An HD Hyundai executive explains the firm's warship mockup to a visitor at MADEX, an international maritime defense expo, held in Busan, Korea on May 28, 2025 HD Hyundai’s early bet on green ships is now paying off.
HD Hyundai Heavy said it has secured technology to build large-scale LNG vessels seven years ahead of Chinese competitors, maintaining a critical technological lead.
DIVERSITY STRATEGY BEARS FRUIT
HD Hyundai’s success is not limited to shipbuilding.
Its strategic diversification into power equipment, heavy machinery and ship repair is also proving profitable.
HD Hyundai Heavy delivers a next-generation Aegis detroyer, Jeongjo the Great, to the South Korean Navy in November 2024 HD Hyundai Electric Co., a transformer maker spun off from HD Hyundai Heavy Industries, has seen its market cap surge by nearly 690% over the past two years to 13.7 trillion won.
Demand for power infrastructure, driven by AI data centers and ageing electrical systems, has been a key catalyst. Analysts expect the company’s operating profit to top 1 trillion won next year.
HD Hyundai Marine Solution Co., another successful spinoff led by HD Hyundai Executive Vice Chairman Chung Ki-sun in 2017, is rapidly expanding its footprint.
Initially focused on maintenance and bunkering services, the company now also specializes in retrofitting ships for eco-friendly operations.
A ship undergoes HD Hyundai Marine Solution's maintenance service (Courtesy of HD Hyundai) HD Hyundai Marine’s revenue is forecast to reach nearly 2.1 trillion won this year, a tenfold increase from 240.3 billion won in 2017, with this year’s operating profit expected to hit 362.4 billion won, according to the market consensus.
RISING THROUGH THE RANKS
HD Hyundai Group’s ascent has reshaped Korea’s corporate hierarchy.
HD Hyundai Heavy Industries' vision for ammonia-powered ship Once ranked ninth in terms of market capitalization, the group now stands fifth. Its flagship, HD Hyundai Heavy Industries, remains the largest among its affiliates with a market value of 35.3 trillion won. Its shares have risen 38.3% this year, despite a 3.5% pullback on Wednesday.
HD KSOE came in second among the group affiliates with 20.5 trillion won in market cap.
Seven of the group’s non-shipbuilding affiliates are forecast to post a combined operating profit of 1.7 trillion won this year.
Write to Woo-Sub Kim at duter@hankyung.com In-Soo Nam edited this article.
