"Geoje Yaho~!" Beneficiaries of the Korean Nuclear Submarine Project [Weekend Money]

Korean Nuclear-Powered Submarine Project
Hanwha Ocean Expected to Build at Geoje Shipyard
"HD Hyundai Heavy Industries Also Seen as Major Beneficiary"

Hanwha Ocean and HD Hyundai Heavy Industries have been identified as companies likely to benefit from the Korean nuclear-powered submarine project.

In a recent report, Jin Lee, a researcher at Daishin Securities, stated, "The construction of nuclear-powered submarines is an event that can elevate the technological capabilities and business status of Korean shipbuilders. Among the related companies, Hanwha Ocean and HD Hyundai Heavy Industries are expected to benefit the most." Hanwha Ocean has built the largest number of submarines in Korea, with its headquarters located in Geoje, South Gyeongsang Province.

The researcher added that the defense sector’s core role is expected to expand, and there are high expectations for long-term order growth. In particular, as the proportion of high-value-added and highly complex projects increases, the quality and visibility of earnings will improve, potentially leading to a revaluation of their corporate value.

Girl group Lysenne members Wonyi (left) and Minami (right) are shouting "Geoje Yaho." Screenshot from YouTube channel 'Hello, This Is Wonyi, Nice to Meet You' and Google Gemini image generation.

Meanwhile, the military authorities announced that a domestically developed and constructed Korean nuclear-powered submarine based on low-enriched uranium (LEU) will be built. The researcher noted that France is the only country operating nuclear-powered submarines with less than 20% LEU, so Korea is highly likely to use France as a benchmark. He also projected that the launch would be completed in the late 2030s.

In terms of geographical characteristics, Korea is similar to France. France’s maritime territory is divided between the North Sea and the Mediterranean, while Korea’s surveillance and reconnaissance areas are split between the East Sea and the South Sea. To operate forces on both fronts, a conservative estimate suggests that four submarines would be needed. However, because nuclear fuel rods based on low-enriched uranium require replacement every 10 years, there is a high likelihood that up to six submarines will be ordered, similar to France, when considering the operational gaps caused by maintenance, repair, and overhaul (MRO).

Additionally, the adoption of low-enriched uranium fuel is expected to boost shipbuilders’ revenue. He explained, "When low-enriched uranium fuel is used, the MRO cycle is shorter compared to highly enriched uranium, which is advantageous for shipyards as it increases top-line revenue through MRO work."

This content was produced with the assistance of AI translation services.