As HD Hyundai Chair Chung Ki-sun marks his first year at the helm, the 44-year-old leader has implemented significant changes, including major mergers and an expansion of the company’s US shipbuilding partnerships.
On October 17, 2025, Chung, a third-generation member of Hyundai’s founding family, took over as leader from Kwon Oh-gap, who became honorary chairman on the same day. Since joining Hyundai Heavy Industries in 2009, Chung has focused on streamlining the group’s core businesses, which include shipbuilding, construction equipment, and energy.
Chung has also explored opportunities beyond the company’s traditional industrial operations, driving growth and diversification. His efforts have led to the integration of various business segments, creating a more cohesive and efficient organization.
Mergers and consolidation
One of Chung’s earliest major decisions was to merge HD Hyundai Heavy Industries with HD Hyundai Mipo in December. The merger formed a single entity capable of producing vessels ranging from midsize commercial ships to large liquefied natural gas carriers and naval warships.
The consolidation brought together the two companies’ engineering, production, and research capabilities, with the merged entity targeting annual revenue of 37 trillion won by 2035, including 10 trillion won from defense contracts.
US push
Chung’s restructuring efforts have coincided with a stronger push into the US shipbuilding market, driven by the “Make America Shipbuilding Great Again” initiative, which aims to deepen maritime cooperation between Seoul and Washington.
HD Hyundai Heavy Industries has collaborated with US defense technology firm Anduril Industries to develop autonomous surface vessels for commercial and military use. The group has partnered with Kiewit Offshore Services to explore US shipbuilding projects, including domestic fabrication of ship blocks and modules.
It has also signed an agreement with Huntington Ingalls Industries, the largest US military shipbuilder, to cooperate on naval auxiliary and commercial vessels. Industry sources indicate that HD Hyundai is exploring US shipyard acquisitions and equity investments to strengthen its market presence.
AI and energy
Chung has diversified the group’s revenue streams by investing in growing demand for artificial intelligence infrastructure and next-generation energy technologies.
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In September, HD Hyundai Heavy Industries announced a 1.07 trillion won investment in new production facilities for land-based power generation engines and small modular reactors, targeting rising electricity demand from AI data centers.
Of this investment, 833.6 billion won will go toward a new HiMSEN engine production base in Ulsan with an annual capacity of 3 gigawatts. The remaining 238.6 billion won will fund a plant manufacturing key SMR components.
HD Hyundai Electric signed a long-term framework agreement in July to supply power and distribution equipment to a global tech firm for its North American data centers.
The company has raised its 2026 order target by 22.8 percent from $4.22 billion. It is also expanding its production capacity in South Korea and Alabama to increase its North American ultra-high-voltage transformer capacity by 50 percent.
Challenges ahead
Despite progress in restructuring and diversification, Chung faces significant challenges as he enters his second year, including intensifying competition from Chinese shipbuilders.
Chinese shipbuilders are rapidly closing the technology gap with their South Korean competitors, moving into higher-value segments like LNG carriers, traditionally dominated by Korean firms.
Chung acknowledged these challenges in a message to employees on Oct. 20, 2025: “The remaining 238.6 billion won will go toward a plant manufacturing key SMR components, positioning the company to tap demand for carbon-free power generation.HD Hyundai Electric, the group’s power e
Labor disputes remain a concern, with workers at HD Hyundai Heavy Industries conducting seven rounds of partial strikes during this year’s wage negotiations. Union members voted down a tentative agreement on October 2 with 52.14 percent opposing it, leaving the dispute unresolved.
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