0033 GMT - The outlook for South Korea's shipbuilding and defense sectors appears positive, Daiwa Capital analysts Mike Oh and Daeho Son write in a note. They see U.S.-South Korean shipbuilding cooperation as a potential margin-expansion opportunity for Korean shipyards, which are likely to enjoy favorable pricing terms on U.S. strategic commercial vessel orders and navy contracts, they say. They prefer HD Hyundai Heavy Industries to other local peers, citing its cost-efficient approach in the defense sector. Their midterm order outlook for Korean defense companies remains positive on global rearmament initiatives, as the U.S. seems to be less willing to intervene in conflicts. Their preferred local defense name is Hanwha Aerospace Industries. (kwanwoo.jun@wsj.com)

(END) Dow Jones Newswires

November 24, 2025 19:33 ET (00:33 GMT)

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