Journalist

Kim Hee-su, Han Jun-gu
  • Seoul offers Canadians a real undersea ride in last stretch of submarine race
    Seoul offers Canadians a real undersea ride in last stretch of submarine race SEOUL, May 15 (AJP) - A South Korean flag-bearing submarine will surface at the Port of Victoria, off Canada's western coast, later this month after a two-month journey with Canadian crew members aboard — sailing from Jinhae in southern Korea in a symbolic outreach as Ottawa weighs Team Korea against Europe for a multibillion-dollar submarine contract. The bid to supply Canada with up to 12 next-generation submarines has narrowed to consortia led by Korea's Hanwha Ocean and Germany's Thyssenkrupp Marine Systems (TKMS). Canadian Prime Minister Mark Carney has said Ottawa aims to decide on a supplier for the Canadian Patrol Submarine Project by the end of next month. As Ottawa seeks to replace its aging Victoria-class fleet, analysts cited by Canadian media estimate the total cost at between 60 billion and 120 billion Canadian dollars over the submarines' life cycle, including roughly 24 billion to 30 billion for the initial purchase. Hanwha Ocean is offering a variant of South Korea's KSS-III Batch-II submarine, while TKMS is proposing the Type 212CD, jointly procured by Germany and Norway. Both are conventionally powered diesel-electric submarines. Seoul has mounted an unusually aggressive campaign. The Republic of Korea Navy's Dosan Ahn Chang-ho, a KSS-III-class vessel, left Jinhae Naval Base on March 25 on a 14,000-kilometer trans-Pacific voyage. The submarine is expected to arrive at CFB Esquimalt in Victoria, British Columbia, before participating in joint exercises with the Royal Canadian Navy in June. During a stop in Hawaii on May 7, two Canadian submarine crew members boarded the vessel to observe its operations firsthand. "The South Korean Navy has friendly ties with Canada," a South Korean Navy official said. "There have been several maritime exercises before, but this is the first time a South Korean submarine has gone there." The June exercise is expected to involve one submarine and one surface vessel from each side. The voyage allows South Korea to demonstrate both the submarine's capabilities and its ability to operate the platform across the Pacific — a pointed argument to Ottawa about operational reach. Diplomatic efforts are also intensifying. According to sources familiar with the matter, Seoul is considering sending a high-level government delegation, potentially including presidential chief of staff Kang Hoon-sik, to Ottawa. Canada extended the bidding process in early April, giving the two remaining contenders more time to revise their proposals — a move widely seen as a signal that Ottawa wanted stronger economic and industrial benefits before making a final decision. Hanwha Ocean has since raised the value of its proposed economic benefits from 60 billion to about 70 billion Canadian dollars, and added a plan to produce military and industrial vehicles in Canada using local parts and labor. Germany is making an equally aggressive late push. German Defense Minister Boris Pistorius is expected to return to Ottawa in late May for CANSEC, Canada's largest defense industry exhibition. Earlier this month, German Vice Chancellor and Finance Minister Lars Klingbeil also visited Canada to champion TKMS' bid. TKMS has emphasized industrial cooperation with Canadian companies, including Bombardier, framing its proposal as a long-term partnership rather than a traditional arms purchase. The geopolitical backdrop has added another layer of complexity. Trade pressure from the Trump administration has reinforced calls in Canada to reduce dependence on the United States and deepen strategic ties with Europe and Asia — a current that both bidders are trying to ride. Canada has not ordered a new submarine since the Cold War era and has never sought to acquire 12 at once. Its current fleet of four secondhand Victoria-class submarines has been plagued by persistent readiness problems, with reportedly only one vessel available for operations at times. On paper, TKMS holds a clear export advantage, having supplied submarines to navies around the world. Hanwha Ocean, by contrast, counts only one overseas submarine contract — with Indonesia. But Seoul is betting that a submarine arriving under its own power on Canada's doorstep, crewed in part by Canadians, makes an argument that no brochure can. The opportunity comes as South Korea pursues an ambitious goal of becoming one of the world's four largest defense exporters. According to the Stockholm International Peace Research Institute, South Korea ranked among the world's top ten arms exporters from 2020 to 2024, with systems including the K9 self-propelled howitzer, Chunmoo multiple rocket launcher and FA-50 light attack aircraft expanding Seoul's footprint in NATO markets. 2026-05-15 16:49:55
  • HD Hyundai Heavy skips first KDDX bid, expected to join second round
    HD Hyundai Heavy skips first KDDX bid, expected to join second round SEOUL, May 15 (AJP) - HD Hyundai Heavy Industries did not participate in the first round of bidding for ships for South Korea’s next-generation destroyer project, but is expected to join the second round. According to the Defense Acquisition Program Administration and industry officials on Friday, HD Hyundai Heavy did not complete preliminary registration for the designated competitive bidding process for the Korean Destroyer Next Generation, or KDDX, by Thursday’s deadline. However, the company said it is preparing to take part in the bidding process, signaling that it is likely to participate in the second round. With HD Hyundai Heavy absent from the first round, Hanwha Ocean was the sole bidder, meaning the bid effectively failed to meet the required conditions. DAPA is expected to issue a second bidding notice later this month to move the long-delayed project forward. “We are currently preparing to participate in the bidding,” an HD Hyundai Heavy official said. “But we need more time to comprehensively review the relevant conditions.” The KDDX project, worth 7.04 trillion won ($5 billion), aims to build six 6,000-ton-class destroyers, often referred to as “mini-Aegis” ships. Naval shipbuilding projects typically move from concept and basic planning to detailed engineering, construction and follow-on vessels. The KDDX contract is expected to be awarded through a competitive bidding process between HD Hyundai Heavy and Hanwha Ocean. DAPA had planned to select the final contractor within the first half of this year after issuing the bidding notice in March and completing proposal evaluations and negotiations. The agency aims to deliver the lead ship to the Navy by 2032. But with the bidding process for the detailed design and lead ship construction delayed, the final selection of the contractor is also expected to be pushed back. “As the project has already been delayed for a long time, we will promptly issue a rebid notice and proceed with the project without further setbacks,” a DAPA official said. 2026-05-15 16:26:32
  • Hanwha signs teaming agreement with Milrem Robotics for Romanian UGV program
    Hanwha signs teaming agreement with Milrem Robotics for Romanian UGV program SEOUL, May 15 (AJP) - Hanwha Aerospace has signed a teaming agreement with Estonia’s Milrem Robotics to jointly pursue Romania’s unmanned ground vehicle program, as the South Korean defense firm seeks to expand its presence in the European market. The agreement was signed during the Black Sea Defense & Aerospace, or BSDA 2026, exhibition in Bucharest by Hanwha Aerospace, its Romanian subsidiary Hanwha Aerospace Romania and Milrem Robotics, Hanwha Aerospace said Friday. Under the agreement, Hanwha Aerospace Romania is expected to serve as the prime contractor and lead local production, offering wheeled UGV platforms based on Hanwha’s Arion-SMET and the upgraded GRUNT variant. Milrem Robotics will provide its THeMIS tracked UGV platform and related technologies as part of Hanwha’s integrated proposal. Hanwha said the partnership is aimed at delivering a flexible and scalable unmanned solution tailored to Romania’s operational needs, while strengthening local industrial capabilities and broader European cooperation. “We are pleased to mark this collaboration at BSDA 2026, which represents an important step in bringing advanced unmanned capabilities into Romania through localized production and industrial cooperation,” said Lino Lim, CEO of Hanwha Aerospace Romania. Kuldar Väärsi, CEO of Milrem Robotics, said the company sees strong potential to expand manufacturing capabilities to Romania in cooperation with Hanwha. Ahead of the exhibition, Hanwha Aerospace and Milrem Robotics also conducted a live manned-unmanned teaming demonstration near Bucharest on May 12. 2026-05-15 15:25:27
  • Seoul to unveil nuclear-powered submarine roadmap as early as this month
    Seoul to unveil nuclear-powered submarine roadmap as early as this month SEOUL, May 15 (AJP) - South Korea is expected to unveil a roadmap for its nuclear-powered submarine program as early as the end of this month, government sources said Friday. The move is seen as an attempt by Seoul to present its own timeline for the long-sought project, as follow-up talks with Washington have been slow. The Ministry of National Defense, which leads an interagency task force on the issue, is expected to announce the plan, though the exact timing has yet to be finalized. The basic plan is expected to outline the mission and role of the submarines, including their defensive nature, as well as Seoul’s commitment to complying with the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). During a visit to Seoul in April, International Atomic Energy Agency (IAEA) Director General Rafael Grossi said South Korea would need a separate safeguards arrangement with the agency if it moves ahead with nuclear-powered submarines, noting that “the nuclear material is not continuously accessible to inspectors” because of the nature of such vessels. He stressed the need for “technically sound arrangements” to verify that the material is used only for propulsion and does not contribute to nuclear proliferation. Nuclear-powered submarines have long been a priority for South Korea’s military, with discussions dating back to the Kim Young-sam administration. After years of failed attempts, the project gained momentum after South Korea and the United States agreed on the issue during their summit on the sidelines of last year’s APEC summit in Gyeongju. Defense Minister Ahn Gyu-back recently discussed cooperation on South Korea’s nuclear-powered submarine program during his visit to the U.S., where he met with U.S. Defense Secretary Pete Hegseth, the acting secretary of the Navy and key members of Congress. Powered by small nuclear reactors, nuclear-powered submarines can theoretically remain submerged for months and travel much faster than conventional diesel-electric submarines, making them a strategic asset. South Korea’s military has reviewed plans to build at least four nuclear-powered submarines with a displacement of 5,000 tons or more after the mid-2030s. As the project would mark the first domestic use of a nuclear reactor on a submarine, the government is also seeking to enact a special law on nuclear-powered submarines to establish a management framework for military nuclear energy. 2026-05-15 11:27:10
  • Air Force chief to accelerate F-5 phaseout, prepare manned-unmanned combat systems
    Air Force chief to accelerate F-5 phaseout, prepare manned-unmanned combat systems SEOUL, May 14 (AJP) - Air Force Chief of Staff Gen. Son Seok-rak said South Korea will accelerate the phaseout of its aging F-5 fighter jets from 2030 to 2027, as the Air Force prepares to shift toward manned-unmanned combat systems. “We are preparing to withdraw the F-5 fighter jets from service before the end of next year,” Son said during a meeting with defense ministry correspondents in Seongnam, Gyeonggi Province, on Wednesday. The F-5 has long served as one of the Republic of Korea Air Force’s key light fighter jets. Introduced in the 1970s and later produced locally as the KF-5, the aircraft helped expand South Korea’s fighter fleet at a time when the country was strengthening its independent air defense capabilities. Son said the Air Force is also pushing to introduce low-cost unmanned assets such as LUCAS by the early 2030s, which could be deployed in large numbers during the initial stage of a war. “We are aiming to develop AI pilots by the 2040s and further prepare for a transition to unmanned combat squadrons,” he said. Son said the KF-21 alone would not be enough to meet future operational needs, stressing the need to speed up the development of unmanned attack aircraft and unmanned combat aircraft. “We will complete a manned-unmanned teaming system and connect it to a sixth-generation fighter system in the 2040s and 2050s,” he said. He added that unmanned systems are not intended to replace humans, but to enhance combat power. “The judgment and expertise of pilots will become even more important,” Son said. The Air Force is also stepping up efforts to build AI-based command and operational systems. Son said the Air Force is currently operating “Air Wars,” a generative AI platform developed in-house. “We have established the military’s first AI-based work management system,” he said. “The Air Force is also taking part in designing generative AI platforms for the defense ministry and the defense acquisition sector.” 2026-05-14 18:09:28
  • Korean arms gain strategic role as Southeast Asia balances US-China rivalry
    Korean arms gain strategic role as Southeast Asia balances US-China rivalry SEOUL, May 14 (AJP) - Southeast Asian countries are increasingly turning to South Korean weapons as they seek to modernize their militaries while navigating the intensifying rivalry between the United States and China. The trend is drawing growing attention as Washington expands its Indo-Pacific security operations beyond the Korean Peninsula and Japan, while Southeast Asian nations continue pursuing flexible defense ties with both major powers. According to industry sources, some U.S. Forces Korea units recently took part in multinational drills in the Philippines, an unusual move that underscored how U.S. assets stationed in South Korea could be used more flexibly for regional contingencies. The deployment followed remarks last month by Gen. Xavier Brunson, commander of the South Korea-U.S. Combined Forces Command and U.S. Forces Korea, who proposed a “kill web” concept linking South Korea, Japan and the Philippines through a cyber-based network for intelligence sharing and joint military operations during a contingency. At the same time, Thailand has moved to deepen military engagement with China while maintaining its long-standing defense relationship with the United States. China’s defense ministry said it would hold the “Assault 2026” joint exercise in Thailand this month, focusing on operations in mountainous and jungle terrain. The drills come as Thailand continues to participate in Cobra Gold, one of the region’s largest U.S.-led multinational exercises. A report by the Asan Institute for Policy Studies said South Korea’s advanced technology, its status as a “non-threatening power,” and its relatively neutral image have made it an attractive partner for Southeast Asian countries seeking to modernize their militaries. In that environment, South Korean weapons are emerging as a practical option for countries seeking advanced but relatively affordable systems that are not directly tied to either Washington or Beijing. Indonesia has been South Korea’s largest customer in Southeast Asia, accounting for 55 percent of defense exports to the region over the past two decades, according to an analysis by the International Institute for Strategic Studies. Jakarta has imported Korean-made T-50 and KT-1 trainer aircraft, as well as Jang Bogo-class submarines, while also participating in the KF-21 fighter development program. The relationship has evolved beyond simple arms purchases into broader technology cooperation and joint development. Philippines has also emerged as one of Seoul’s key defense partners, particularly as Manila seeks to strengthen its air and maritime capabilities amid tensions in the South China Sea. The Philippine military operates FA-50PH light attack aircraft and has moved to expand its fleet, with Korea Aerospace Industries signing a deal in 2025 to supply 12 additional FA-50 jets after its initial contract for 12 aircraft in 2014. South Korea has also supplied frigates and corvettes to the Philippine Navy, making Korean weapons a major component of Manila’s military modernization efforts. Thailand, while carefully balancing ties between the United States and China, has likewise adopted Korean-made defense systems. The Royal Thai Air Force operates the T-50TH, a Thai variant of South Korea’s T-50 advanced trainer and light attack aircraft, while the country has also acquired Korean-built naval assets. The reported use of Korean-made guided munitions during Thailand’s border clashes with Cambodia in 2025 highlighted how Korean weapons are no longer merely procurement items, but could increasingly become part of real-world regional security dynamics. Malaysia has expanded its purchases of Korean defense systems from aircraft to naval air defense platforms. Kuala Lumpur signed a deal in 2023 to acquire 18 FA-50M light combat aircraft from Korea Aerospace Industries, strengthening South Korea’s role in Malaysia’s air force modernization program. In April 2026, Malaysia also signed a contract worth about $94 million with LIG Defense & Aerospace to purchase the Haegung, or K-SAAM, ship-launched surface-to-air missile system, which is expected to be installed on three Malaysian Navy vessels. The agreement marked the first overseas sale of the Haegung system. IISS senior fellow Thomas Daniel said developing countries have long sought defense equipment compatible with Western systems, a demand that “the major players have overlooked.” However, he also pointed to a potential challenge for Seoul as global demand for Korean weapons rises, questioning whether Southeast Asian buyers, which typically place smaller orders, could be pushed “to the back of the line.” Vietnam has recently emerged as a new market for South Korean ground weapons, with bilateral defense cooperation reaching a symbolic turning point through the K9 deal. In 2025, Hanwha Aerospace signed a deal worth about $250 million to supply 20 K9 self-propelled howitzers to Vietnam, marking South Korea’s first arms export to the country. The deal is significant not only because Vietnam has long relied heavily on Russian weapons, but also because it reflects how two countries that were once adversaries during the Vietnam War are now moving toward a strategic defense partnership. Vietnam’s purchase of the K9 is also seen as part of a broader effort to diversify defense procurement sources amid growing uncertainty surrounding Russian supply chains. Ian Storey of Singapore’s ISEAS-Yusof Ishak Institute said South Korea has become an attractive option for Southeast Asian countries because Seoul offers advanced weapons at lower prices than Western suppliers and is more willing to transfer technology to support local defense industries. “South Korean arms are hi-tech and cheaper than Western defense equipment,” he said. Prashanth Parameswaran, a regional security analyst, said South Korea’s expanding security ties with ASEAN countries have created opportunities for Seoul but also pose challenges. While deeper defense cooperation gives South Korea room to expand its role as a regional security partner, it also exposes Seoul to the political risks of becoming more directly involved in Southeast Asia’s disputes and broader great-power competition. For Seoul, the question is whether it can remain primarily an arms supplier or whether growing demand for Korean weapons will push it toward a broader strategic role in Asia’s security order. As more Southeast Asian countries integrate Korean systems into their military modernization programs, defense exports may become increasingly difficult to separate from diplomacy and regional security politics. 2026-05-14 17:58:52
  • Foreign minister vows follow-up response over attack on HMM vessel Namu
    Foreign minister vows follow-up response over attack on HMM vessel Namu SEOUL, May 14 (AJP) - Foreign Minister Cho Hyun said Thursday that South Korea will take necessary follow-up measures over the recent attack on the HMM cargo vessel Namu after conducting an additional government investigation. “Based on the position that attacks on civilian vessels, including the Namu, cannot be justified or tolerated under any circumstances, we will continue consultations with relevant countries,” Cho said during a press briefing at the Foreign Ministry in central Seoul. Cho said the government will carry out an additional investigation into the attack and “take necessary response measures accordingly.” A senior Foreign Ministry official said debris from the incident, which had initially been kept at the South Korean Consulate General in Dubai, has been moved to the South Korean Embassy in Abu Dhabi and will be brought to Korea “as soon as possible.” “Once the debris is brought in, I believe our Defense Ministry’s expert investigative agency will conduct a thorough examination and uncover various details,” the official said. Regarding CCTV footage from the Namu that reportedly captured an aerial object, the official said the shipowner has so far declined to release the video, citing several reasons. “I have not seen it yet either,” the official said. “There are differences in views at the moment, but we will try to persuade them so that the CCTV footage can be disclosed and examined as part of the investigation.” Cho also said the Foreign Ministry is closely monitoring the course of the Middle East war and possible changes in the international order after the conflict ends, while preparing for any impact on South Korean nationals and national interests. “We will make swift and multifaceted efforts to turn various crises into opportunities,” Cho said. He added that the ministry is maintaining close cooperation and communication with major countries to ensure the free passage of vessels and the safety of South Korean seafarers, while upholding the principles of international maritime law and freedom of navigation. 2026-05-14 17:01:36
  • S. Korea, US defense officials discuss alliance goals without OPCON details
    S. Korea, US defense officials discuss alliance goals without OPCON details SEOUL, May 14 (AJP) - South Korea and the U.S. held senior-level defense talks in Washington this week to discuss the future direction of their alliance, as the two sides appear to remain divided over key issues, including the transfer of wartime operational control. South Korea’s defense ministry said Thursday that the Korea-U.S. Integrated Defense Dialogue, or KIDD, was held in Washington from Tuesday to Wednesday, led by Kim Hong-cheol, Seoul’s deputy minister for defense policy, John Noh, U.S. assistant secretary of war for Indo-Pacific security affairs, and James Finch, acting deputy assistant secretary for East Asia. Senior officials from the defense and foreign affairs ministries of both countries also attended. During the meeting, the two sides agreed to step up cooperation to carry out defense-related commitments from last November’s leaders’ joint fact sheet and the joint statement adopted at the 57th Security Consultative Meeting, or SCM. The joint fact sheet included cooperation on South Korea’s plan to build nuclear-powered submarines, while last year’s SCM statement said the two sides would set a target year for the transfer of wartime operational control, or OPCON, by the end of this year. The latest KIDD talks are believed to have included efforts to narrow differences over pending alliance issues, including OPCON transfer. But the ministry’s announcement did not include any specific mention of discussions on the issue. Ahead of the KIDD session, South Korean Defense Minister Ahn Gyu-back met U.S. Secretary of War Pete Hegseth in Washington on Monday. Ahn said the two sides shared the view that OPCON should be transferred at an early date, but added that “there are some areas where the U.S. side has slightly different views.” Other pending issues, including cooperation on nuclear-powered submarines and a proposal for divided management of the Demilitarized Zone, currently overseen by the U.N. Command, are also believed to have been discussed. But the ministry did not disclose details on whether or how those issues were addressed. Still, the reference to implementing the leaders’ joint fact sheet and last year’s SCM outcome suggests the two countries intend to keep seeking progress on the pending issues. Launched in 2011, the KIDD is a senior-level consultative body designed to support timely and effective security coordination between Seoul and Washington. The talks are held once or twice a year, alternately in South Korea and the U.S. This week’s meeting also served as part of preparations for this year’s SCM between the defense chiefs of the two countries, which is expected to be held later this year. 2026-05-14 11:03:40
  • Seoul mulls US-led Hormuz mission amid questions over Namu findings 
    Seoul mulls US-led Hormuz mission amid questions over Namu findings  SEOUL, May 13 (AJP) - South Korea is facing growing questions over its investigation into the recent attack on an HMM vessel Namu, as the case becomes increasingly intertwined with Washington’s call for Seoul to play a larger role in securing the Strait of Hormuz. National Security Adviser Wi Sung-lac on Wednesday said that Seoul is reviewing participation in the U.S.-led maritime security initiative aimed at ensuring freedom of navigation in the Strait of Hormuz. “The United States has proposed the Maritime Freedom Initiative and a plan called ‘Project Freedom,’” Wi told a press conference with the Korea News Editors' Association. “Like other forms of international cooperation, we are reviewing the maritime freedom initiative as well.” Wi added that President Lee Jae Myung had already expressed willingness to make “practical contributions” during a recent virtual conference led by Britain and France and said Seoul is actively participating in multinational military and diplomatic cooperation efforts related to the Middle East conflict. The comments came as Defense Minister Ahn Gyu-back, currently visiting Washington, disclosed that he had informed U.S. Defense Secretary Pete Hegseth that Seoul is considering phased contributions to restoring safe passage through the strategic waterway. “Basically, I said we would participate as a responsible member of the international community and review ways to contribute in stages,” Ahn told reporters at the South Korean Embassy in Washington. Ahn said possible forms of support could include diplomatic backing, personnel dispatch, intelligence sharing and the provision of military assets, while stressing that any decision would be made after considering international law and domestic legal procedures. Hegseth, during the opening remarks of his meeting with Ahn earlier this week, emphasized the importance of alliances and said Washington expects its partners to stand “shoulder to shoulder” with the United States amid the escalating confrontation with Iran. At the center of the debate is the Namu, a South Korean vessel that caught fire in the Strait of Hormuz on May 4. The South Korean government initially stopped short of attributing the incident to an external attack. Early assessments found no clear signs of external impact, while HMM officials said there were no visible cracks or fractures because no seawater had leaked into the ship. The vessel’s labor union also disputed U.S. President Donald Trump’s earlier claim that the ship had been independently transiting the Strait at the time, saying it had actually been anchored alongside other vessels. However, after a joint government investigation team inspected the vessel in Dubai, Seoul announced on May 10 that the fire had been caused by an external impact. The Foreign Ministry said the ship had been struck twice near the stern about one minute apart, and CCTV footage showed two unidentified flying objects approaching the vessel. Officials said they still could not determine the origin, size or type of the objects. The shift in Seoul’s assessment has raised questions among maritime and military experts. Some analysts point out that if the external damage was clear enough for government investigators to confirm through visual inspection, it remains unclear why the crew, HMM or foreign maritime security firms failed to identify such evidence immediately after the incident. British maritime security company Vanguard had earlier raised the possibility of an underwater drone or drifting mine while noting that no external penetration holes had been confirmed at the time. Experts also said the size and shape of the damaged area suggest the vessel was more likely hit by a drone or a small anti-ship missile than by a conventional cruise missile designed to sink a warship. The damaged section, reportedly measuring about 5 meters by 7 meters, appeared relatively limited compared with the destruction expected from a larger missile strike. The suspected entry hole, estimated at around 50 centimeters, has led some observers to point to the possibility of a Shahed-series suicide drone, although Seoul has so far avoided publicly identifying either the weapon or the attacker. “We do not yet have grounds to definitively conclude that it was a drone,” Wi said Wednesday, adding that missiles and other possibilities remain open pending further investigation. Foreign Minister Cho Hyun also stressed caution. “It is difficult to specify that at this point,” Cho said Wednesday. “Even within Iran, there could be several possible actors. Militias could also be involved.” Iran has denied involvement. The Iranian Embassy in Seoul said shortly after the incident that Iranian forces were not responsible, and Tehran is understood to have maintained that position even after Seoul disclosed photographs showing external impact marks on the vessel. Several experts said the unresolved questions surrounding the Namu incident could complicate Seoul’s deliberations over how far it should go in supporting U.S.-led maritime security efforts. Treating the incident as an external attack on a South Korean civilian vessel could provide Seoul with a stronger rationale for participating in operations aimed at securing the Strait of Hormuz, allowing the government to frame involvement as protecting Korean ships, citizens and energy supply routes rather than simply responding to U.S. pressure. At the same time, analysts warn that any premature attribution could heighten tensions with Iran or expose South Korea to additional security risks in a waterway where Korean commercial vessels continue to operate. 2026-05-13 17:30:06
  • HD Hyundai posts record quarterly profit on broad profitability gains
    HD Hyundai posts record quarterly profit on broad profitability gains SEOUL, May 13 (AJP) - HD Hyundai posted its highest-ever quarterly operating profit, supported by broad growth across its shipbuilding, power equipment and energy businesses. The results have raised expectations that the group is on track to achieve its goal of reaching 100 trillion won ($67.2 billion) in annual sales by 2030, as its selective order strategy focused on eco-friendly vessels and growing demand for power infrastructure in North America begin to translate into stronger profitability. HD Hyundai said Wednesday in a regulatory filing that it logged 19.6 trillion won in consolidated sales and 2.83 trillion won in operating profit in the first quarter. Sales rose 14.7 percent from a year earlier, while operating profit surged 120.4 percent. It marked the group’s largest quarterly operating profit since its transition to a holding company structure in 2017. The shipbuilding division remained the biggest driver of earnings, accounting for 64 percent of the group’s total operating profit. HD Korea Shipbuilding & Offshore Engineering, the group’s shipbuilding subholding company, posted 8.14 trillion won in sales and 1.36 trillion won in operating profit, with an operating margin of 16.7 percent. Sales increased 20.2 percent from a year earlier, while operating profit rose 57.8 percent, helped by a higher share of high-priced vessels such as liquefied natural gas carriers and increased delivery volumes through improved production efficiency. HD Hyundai Marine Solution also reported solid growth, backed by its core aftermarket business and higher sales from its bunkering operations. Sales rose 18.3 percent year-on-year to 574.6 billion won, while operating profit climbed 12.5 percent to 93.4 billion won. Its operating margin stood at 16.3 percent. HD Hyundai Electric, the group’s power equipment unit, continued to benefit from growing investment in power grids in North America. The company recorded 1.04 trillion won in sales and 258.3 billion won in operating profit. HD Hyundai expects growth momentum to strengthen further once expansion work at its Ulsan plant and North American production subsidiary is completed. HD Hyundai Site Solutions, the group’s construction machinery unit, posted 2.38 trillion won in sales and 207.5 billion won in operating profit, up 21.2 percent and 72.8 percent, respectively, from a year earlier. The gains were driven by a recovery in global demand and accelerated growth in its industrial engine business. In the energy sector, HD Hyundai Oilbank reported 7.72 trillion won in sales and 933.5 billion won in operating profit for the first quarter, despite an uncertain business environment marked by greater oil price volatility amid deepening geopolitical risks. Market watchers said the latest results reflect the group’s selective strategy focused on high-margin businesses under Chairman Chung Ki-sun’s leadership. Since Chung took the helm, HD Hyundai has been strengthening its future business portfolio, with those efforts now beginning to produce visible results. “Profitability improved across all business areas, driving strong earnings,” an HD Hyundai official said. “We will continue to make every effort to expand profitability through selective orders, technology development and process optimization.” 2026-05-13 16:42:14