Chairman Cha Junghoon's Bold Move... Gunsan Shipyard Reignites as a Signal for Regional Economic Revival

J-Ocean Heavy Industries Signs Main Contract for Asset Transfer with HD Hyundai Heavy Industries

Step-by-Step Production Preparation and Simultaneous Order Intake and Construction
Shipbuilding Target Set for Next Year

The Gunsan Shipyard, which had been idle for some time, is preparing to resume operations as a shipbuilding facility. With a new owner, the shipyard is taking its first step toward a new leap forward.

There is growing interest in whether the bold move by Chairman Cha Junghoon, who led this acquisition, can inject new vitality into the stagnant shipbuilding industry of North Jeolla Province and the regional economy.

On June 26, J-Ocean Heavy Industries announced that it had signed the main contract for the transfer of assets and business cooperation for Gunsan Shipyard with HD Hyundai Heavy Industries at the Gunsan Shipyard, located in the Gunsan 2nd National Industrial Complex.

About 50 people attended the signing ceremony, including Yoonduck Kim, Minister of Land, Infrastructure and Transport; Wontak Lee, Governor-elect of North Jeolla Province; Jaejun Kim, Mayor-elect of Gunsan; Uigyeom Kim and Heeseung Park, Members of the National Assembly; Sanghee Heo, Vice Chairman of HJ Heavy Industries; Seokho Keum, President of HD Hyundai Heavy Industries; and Hwajeong Ha, CEO of J-Ocean Heavy Industries, all expressing hope for the normalization of the Gunsan Shipyard.

On the 26th, Jocean Heavy Industries signed the main contract for the transfer of assets and business cooperation of the Gunsan Shipyard located in the Gunsan 2nd National Industrial Complex with HD Hyundai Heavy Industries. (From left) National Assembly member Heeseung Park, National Assembly member Uigyeom Kim, elected governor of North Jeolla Province Wontak Lee, CEO of Jocean Heavy Industries Hwajeong Ha, president of HD Hyundai Heavy Industries Seokho Geum, Minister of Land, Infrastructure and Transport Yoonduk Kim, and elected mayor of Gunsan Jaejun Kim.

Previously, EcoPrime Marine Pacific signed a memorandum of agreement (MOA) with HD Hyundai Heavy Industries in March for the asset transfer of Gunsan Shipyard, and subsequently conducted on-site due diligence and asset verification for about three months. The main contract was finalized on this day through J-Ocean Heavy Industries, which was established to operate Gunsan Shipyard.

J-Ocean Heavy Industries plans to complete the asset transfer by the end of the year, followed by maintenance and reinforcement of production facilities, and to begin shipbuilding from next year. The company also intends to pursue order intake in parallel and nurture Gunsan Shipyard into a production base capable of building finished ships.

EcoPrime Marine Pacific, the largest shareholder of HJ Heavy Industries, has been pursuing the acquisition of Gunsan Shipyard as a strategic investor. Chairman Cha has outlined plans to combine HJ Heavy Industries’ engineering capabilities, eco-friendly shipbuilding technology, and global network with Gunsan Shipyard to create new competitive advantages.

It is also noted that Chairman Cha, a businessman from North Jeolla Province, has consistently shown interest in revitalizing local industries, which is seen as having strengthened the momentum for this acquisition. There are growing expectations in the region that the normalization of Gunsan Shipyard could serve as a turning point not only for restoring the shipbuilding industry ecosystem but also for the recovery of the regional economy.

Once Gunsan Shipyard is fully operational, it will move beyond its former block production model and regain its capacity for building complete ships. This is expected to increase workload for shipbuilding equipment suppliers and partner companies, create new jobs, and have a ripple effect on related industries such as steel, components, and logistics.

Additionally, as more employees and their families from both direct and partner companies move into the area, there are expectations that this will invigorate the Gunsan commercial district and the regional economy as a whole.

A representative of J-Ocean Heavy Industries stated, "This acquisition is more than just securing shipyard assets; it will serve as a catalyst to revitalize North Jeolla Province’s industry and regional economy. We will do our utmost to ensure that order intake and production proceed smoothly through thorough preparation."

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