On Tuesday, shares of South Korea's Hanwha Ocean surged more than 11% after former U.S. President Trump announced the company would build new frigates for the U.S. Navy. Trump stated during a press conference that the vessels would be constructed at Hanwha's Philadelphia shipyard, acquired by the Korean firm in 2024 as part of Seoul's $150 billion shipbuilding commitment. Hanwha has pledged $5 billion in investments to the facility.

This shipbuilding initiative forms part of a broader U.S.-South Korea trade agreement, under which the U.S. reduced tariffs on Korean exports to 15% in exchange for Seoul's $350 billion investment pledge and other concessions.

Hanwha Ocean, a major South Korean shipbuilder, specializes in constructing commercial vessels like LNG carriers as well as military naval platforms, including submarines and surface combatants. South Korean defense stocks have performed strongly this year, with key players like Hanwha Aerospace and Hyundai Rotem surging over 170% and 270% year-to-date, respectively. Hanwha Ocean itself has skyrocketed more than 220% in 2024.

Last week, the U.S. Navy unveiled plans for its FF(X)-class frigates—smaller combat vessels designed to complement larger multi-mission warships and enhance global operational flexibility. Navy Secretary John Ferrer noted these new frigates would join Trump's envisioned "Golden Fleet."

Trump separately announced Monday that the Navy would build two new "Trump-class" battleships, potentially expanding the fleet to 25 vessels. He described them as "among the most lethal surface combatants," claiming they would be "the fastest, largest, and 100 times more powerful than any previous battleship," equipped with hypersonic weapons, lasers, cruise missiles, and nuclear capabilities.