Journalist
Lee nakyeong
nakk@ajunews.com
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Samsung Heavy secures new order for three crude oil tankers SEOUL, March 10 (AJP) - Samsung Heavy Industries has won an order for three crude oil tankers from a Bermuda-based shipowner, the shipbuilder said on Tuesday. The order, worth 400.1 billion Korean won (about US$290 million), is scheduled for delivery by February 2029. The deal brings the shipbuilder's cumulative orders for this year to 11 vessels worth $2.1 billion, reaching 15 percent of its annual target of $13.9 billion. By ship type, the orders consist of three liquefied natural gas carriers, two ethane carriers, two container ships, and four crude oil tankers. "With an order backlog of 137 ships worth $29.5 billion, we will continue to focus on profitability in securing new projects," a company spokesman said. 2026-03-10 15:05:07 -
Kolon Industries wins CDP Korea Awards carbon management sector honors Kolon Industries said March 10 it won the Carbon Management Sector Honors award at the 2025 CDP Korea Awards, hosted by CDP, a global sustainability assessment organization. CDP, formerly known as the Carbon Disclosure Project, is a global nonprofit that collects and evaluates disclosures from major companies and cities on climate strategies, greenhouse gas reduction efforts, and water and forest-related information. Its assessments are widely used by ESG investors, financial institutions and global supply-chain companies in decision-making. Kolon Industries previously received an A, the top grade, in the “2025 CDP Climate Change” assessment announced in February. The company has submitted climate-change performance data since 2017, and in the latest assessment it moved up two levels to A from B. The company cited factors behind the upgrade including approval of its SBTi net-zero target, adoption of an internal carbon price, climate scenario analysis based on physical and transition risks, and expanded third-party verification of Scope 1, 2 and 3 greenhouse gas emissions. It also submitted its first response to the water module last year and received an A- grade, and said it plans to strengthen its water management system in stages in line with its climate strategy. “This award recognizes that our carbon management strategy has taken root as a performance-driven execution system,” a Kolon Industries official said. The official said the company will boost emissions-reduction execution by expanding renewable energy adoption based on its net-zero roadmap, while strengthening sustainability management across its supply chain to build stakeholder trust.* This article has been translated by AI. 2026-03-10 14:09:17 -
Samsung Heavy Wins $400 Million Order for Three Crude Oil Tankers Samsung Heavy Industries said in a regulatory filing on the 10th that it has won an order worth 400.1 billion won for three crude oil tankers from a Bermuda-based shipowner. The vessels are scheduled for delivery by February 2029. With the deal, the company’s year-to-date orders total 11 ships worth $2.1 billion, reaching 15% of its annual target of $13.9 billion. By vessel type, the orders include three liquefied natural gas (LNG) carriers, two ethane carriers, two container ships and four crude oil tankers. A Samsung Heavy official said the company’s order backlog stands at 137 ships worth $29.5 billion, adding that it will continue to focus on profitability in winning new business. * This article has been translated by AI. 2026-03-10 14:03:04
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Diesel Prices in South Korea Top Gasoline, Raising Alarm for Transport Industries International oil prices have surged, pushing diesel — often seen as a working-class fuel — above gasoline in South Korea and raising alarms across industry. With the economy slowing and business conditions already weak, higher energy costs are expected to make it harder for transport-heavy sectors such as logistics, shipping, rail and aviation to protect earnings. According to Opinet, the Korea National Oil Corp.’s price information system, the nationwide average gasoline price at gas stations stood at 1,900.7 won per liter as of 1:30 p.m. Monday, up 5.3 won from the previous day. Diesel rose 6.1 won to 1,923.8 won per liter, overtaking gasoline. Since March 4, when the Middle East war intensified, gasoline has climbed 160.83 won per liter while diesel has jumped 264.45 won. It was the first time diesel exceeded gasoline since February 2023, about three years ago. Diesel typically trades below gasoline because taxes are lower due to heavy industrial use and its pricing tends to be more stable. But the war has increased uncertainty over diesel supply. When geopolitical risks rise, supply can tighten while demand is slow to fall. Diesel is widely used across the economy, including in freight trucks and buses, ships, construction equipment and generators. It is also used to power combat equipment such as tanks, armored vehicles and military trucks, keeping demand elevated. Rising diesel prices can ripple through industry, with logistics firms among the most exposed because fuel accounts for a large share of costs. In aviation, companies are said to be reviewing measures including raising fuel surcharges. Korean Air carries out oil-price hedging for up to 50% of its expected annual fuel consumption and plans to adjust its response as it monitors global oil trends. Low-cost carriers, which rely more heavily on passenger revenue than large airlines that can offset losses with air cargo, could see already weak results deteriorate further. Rail operators also face pressure because fares are directly managed by the government, making it difficult to quickly pass higher fuel costs on to customers. Shipping companies are also on alert, focusing on whether higher oil prices will reduce cargo volumes. They can reflect some fuel costs in freight rates through bunker adjustment factors, but if high oil prices weaken global consumption, export and import volumes could fall. Even industries not directly tied to oil face broader cost pressure. Export-heavy sectors such as semiconductors, automobiles and PCs are concerned about higher logistics costs and transport disruptions. If a prolonged war pushes up shipping and airfreight rates enough to be reflected in product prices, demand could weaken. Automakers also expect high oil prices could slightly dampen consumer sentiment for internal combustion vehicles. While hybrids and electric vehicles are taking a larger share, internal combustion models still account for about half of new-car sales in South Korea, making the sector vulnerable. “Rising fuel costs can affect not only corporate expenses across industry but also consumer prices,” an industry official said. “Policy responses are needed to cushion the shock from a sharp rise in energy prices.”* This article has been translated by AI. 2026-03-09 18:13:12 -
Yeocheon NCC Declares Force Majeure as Hormuz Disruption Hits Naphtha Supply U.S. and Israeli airstrikes on Iran have heightened tensions in the Middle East, sending shock waves through South Korea’s petrochemical industry. With disruptions in naphtha feedstock supply after the closure of the Strait of Hormuz, Yeocheon NCC has declared force majeure, raising concerns among domestic companies that rely on its ethylene supplies. Industry officials and foreign media reported on Thursday that Yeocheon NCC notified major customers on March 4 that product deliveries could be delayed or adjusted and declared force majeure after it could no longer secure naphtha due to the Hormuz closure. The move followed a halt in imports of Middle East-origin naphtha, including from Saudi Arabia, amid the impact of Iran’s drone attacks and the strait’s shutdown. Yeocheon NCC is a joint venture of Hanwha Solutions and DL Chemical and is South Korea’s largest single ethylene production hub, with annual capacity of 2.285 million tons. As restructuring continues across the sector, its third plant has been shut down, leaving only Plants 1 and 2 operating. Hanwha Solutions confirmed reports of the force majeure declaration. The company was reported to have told some customers that contract performance could be temporarily delayed or revised due to disruptions in Middle East naphtha supply following the outbreak of war between the United States and Iran. In a letter to customers, Yeocheon NCC said it was declaring force majeure because the Middle East crisis had disrupted feedstock supply. It said it had no choice but to run all production facilities at minimum capacity starting March 4, outlining plans to cut operating rates. “As geopolitical tensions in the Middle East have suddenly and sharply escalated, we are experiencing severe disruptions in raw material procurement,” it said, adding that the Hormuz closure had significantly delayed the arrival of naphtha feedstock scheduled for delivery in March. Naphtha prices have risen more than 20% since the crisis began. Force majeure is a contract clause that can exempt a seller from liability when performance becomes difficult due to events beyond its control, such as natural disasters or war. The declaration is expected to directly affect Hanwha Solutions and DL Chemical, Yeocheon NCC’s major shareholders and key customers. Yeocheon NCC has supplied the two companies with ethylene and other basic feedstocks through pipelines. For ethylene, it supplies 1.4 million tons a year to Hanwha Solutions and 735,000 tons a year to DL Chemical. Analysts said the situation could worsen if the disruption drags on and inventories run down. NICE Credit Rating said that, considering cargoes shipped before late February and existing stockpiles, major domestic naphtha cracking centers appear to have about one month of reserves. It said companies are likely to respond by lowering operating rates, adjusting maintenance schedules and securing alternative sources to manage supply uncertainty.* This article has been translated by AI. 2026-03-06 17:39:29 -
SeAH Steel Profit Plunges 74.3% in 2025 on Impact of High U.S. Tariffs SeAH Steel said its 2025 results deteriorated sharply as high U.S. steel tariffs hit earnings, with operating profit plunging more than 70%. According to SeAH Steel Holdings on Thursday, SeAH Steel’s separate financial statements showed 2025 revenue of 1.3721 trillion won, down 23.2% from a year earlier. Operating profit fell 74.3% to 51.9 billion won, and net profit dropped 68.0% to 41.6 billion won. The company cited high U.S. tariffs as a key driver. With construction slowing and steel demand weakening, the spread of U.S. protectionism increased tariff burdens, sharply hurting both sales volume and profitability. SeAH Steel is heavily exposed to the U.S. market. Exports to the United States account for about 30% to 38% of total revenue, among the highest shares for South Korean steelmakers. The company relies on demand for energy-industry steel pipes such as oil country tubular goods, or OCTG, and pipeline products, selling through its local distribution unit, SSA (SeAH Steel America). That structure increases earnings volatility as U.S. energy investment and trade conditions shift. At the holding-company level, consolidated results were relatively steady. SeAH Steel Holdings posted 2025 consolidated revenue of 3.7596 trillion won, up 2.3% year over year, while operating profit slipped 2.7% to 205.8 billion won. The company said sales from its U.S. unit and overseas projects partly offset weakness in domestic operations. The company said it plans to strengthen a selective order strategy focused on profitability this year and increase the share of high value-added products. A SeAH Steel Holdings official said, “Despite uncertainty in global markets, demand for steel pipes in North America is expected to remain solid,” adding that the company will use its domestic and global manufacturing bases to meet that demand and deliver stable performance.* This article has been translated by AI. 2026-03-06 14:52:27 -
HD Hyundai Chairman Chung Ki-sun visits Philippines to expand economic cooperation Chung Ki-sun, chairman of HD Hyundai, visited the Philippines as part of a South Korean government economic delegation, seeking to deepen ties and expand economic cooperation between the two countries, the company said March 5. HD Hyundai said Chung paid tribute at a Korean War memorial, attended a Korea-Philippines business forum and inspected HD Hyundai Philippines Shipbuilding (HD Hyundai Philippines). On March 4, Chung visited the Korean War memorial at the National Heroes Cemetery in Manila and laid flowers. The Philippines was the first Asian country to organize a combat unit for the war and deployed the largest contingent, sending 7,420 troops, the company said. Earlier that morning, Chung attended the Korea-Philippines Business Forum, co-hosted by the Federation of Korean Industries and the Philippine Chamber of Commerce and Industry, where participants discussed detailed steps to expand bilateral economic cooperation. On March 5, Chung visited HD Hyundai Philippines in Subic Bay, touring a construction site for a new employee dormitory and the yard, and encouraging staff working there. Over lunch with local employees, he said, "I will take even more special care in areas such as housing, medical services and public safety so employees have no inconvenience," and added, "Above all, I ask that you put safety first and do your best in the work you have been entrusted with." HD Hyundai has continued business cooperation with the Philippines. HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company for HD Hyundai's shipbuilding business, signed a lease in May 2024 with U.S.-based Cerberus Capital for part of a Philippine shipyard site and launched HD Hyundai Philippines. In September last year, HD Hyundai Philippines held a steel-cutting ceremony to begin building its first vessel, a 115,000-ton petrochemical product carrier. HD Hyundai Heavy Industries has won orders for a total of 12 naval vessels from the Philippines since 2016, the company said. In 2022, it established a local logistics support center and has been providing maintenance, repair and overhaul services for delivered ships, including frigates and patrol vessels. Chung said, "Beyond a simple business partnership with the Philippines, we have been serving as a key bridge to strengthen friendship between the Republic of Korea and the Philippines," adding, "We will continue to build deep trust with the Philippines with pride in representing Korea."* This article has been translated by AI. 2026-03-05 11:48:20 -
Young Poong to Review KZ Precision Shareholder Proposals, Plans to Put Legal Items to Vote Young Poong said Thursday it will closely review shareholder proposals submitted by KZ Precision, a related party of Korea Zinc Chairman Choi Yun-beom, ahead of its 75th annual general meeting and plans to place on the agenda any items that comply with relevant laws. The company said it has pursued its own governance reforms and shareholder-value measures, contrary to KZ Precision’s claims. It cited last year’s cancellation of 1,030,500 treasury shares, a 10-for-1 stock split aimed at lowering the entry barrier for small investors, and cash and stock dividends totaling 33.6 billion won. Young Poong also said it has reflected shareholder views in management, including appointing Jeon Young-jun as an outside director who serves on the audit committee after accepting a proposal from ordinary shareholders. Young Poong said it will maintain its shareholder-return stance this year. It plans to cancel all remaining 203,500 treasury shares in the first half, further reducing shares outstanding. The company said the move is intended to enhance shareholder value and reinforce its commitment to responsible management. It also said it will draw up a midterm roadmap for its dividend policy to improve predictability for shareholders and further refine its corporate value-up program. Young Poong said it will also accelerate governance-improvement efforts aimed at raising the corporate value of its key asset, Korea Zinc. The company said it believes Korea Zinc under Choi’s leadership continues to face concerns about potential damage to shareholder value, and it will do its utmost to normalize corporate value through sound governance and protect shareholder interests. Young Poong said it is working to strengthen competitiveness by restoring sales and improving profitability in its core smelting business, while continuing environmental investment to build an eco-friendly smelter. It said it will continue to focus on enhancing shareholder value based on responsible management and transparent decision-making. Separately, Young Poong said it filed a damages lawsuit on March 4 against KZ Precision and its Chairman Choi Chang-gyu and CEO Lee Han-seong, alleging they created the appearance of cross-shareholdings during a management control dispute at Korea Zinc and caused significant losses to Young Poong.* This article has been translated by AI. 2026-03-05 09:21:19 -
War Risk Insurance for Hormuz Shipping Seen Surging as U.S.-Iran Tensions Rise U.S. strikes on Iran have heightened tensions in the Middle East, fueling expectations that war risk insurance for ships transiting the Strait of Hormuz could rise sharply. The market is discussing a jump from about 0.01% of a vessel’s value to as high as 2% to 3%. If that happens, costs would spread beyond shipping lines to cargo owners, weighing on South Korean industry more broadly. According to the shipping industry on Tuesday, global reinsurers are reviewing whether to raise reinsurance rates for war risk coverage on vessels passing through the strait. Some observers had speculated that global marine insurers were pulling war risk coverage and halting related reinsurance. Industry sources said the issue is not a suspension but potential increases in reinsurance rates. War risk insurance is an add-on policy, separate from standard liability coverage, that ships typically buy when entering areas where conflict is possible. Premiums are generally calculated as a percentage of a ship’s value. While rates vary by vessel, they are typically about 0.01% in normal times, but can surge when military tensions rise. During last year’s Red Sea crisis, war risk premiums climbed to about 1% of ship value, nearly 100 times the usual level. For ships transiting the Strait of Hormuz, war risk reinsurance rates are currently said to be about 1% of vessel value. Depending on the risk level by port of call, rates could rise to 2% to 3%. For a ship valued at 100 billion won, that would mean up to 3 billion won in additional premiums. Industry officials said the burden would largely fall on shipping companies. While marine insurance contracts are signed directly between carriers and insurers, the terms are heavily influenced by reinsurers’ decisions. The industry expects higher premiums to push up ocean freight costs and, over time, raise crude oil import costs and add to energy price uncertainty. Analysts said countries like South Korea, which rely heavily on imported crude, are especially exposed to swings in transport costs on Middle East routes. President Trump early Tuesday mentioned providing military protection for tankers passing through the Strait of Hormuz and raised the possibility of insurance and guarantee support for energy transport vessels in the Gulf region through the U.S. International Development Finance Corp. Industry officials said the remarks appeared largely political and were unlikely to translate into policy. South Korea’s government is also monitoring the situation and preparing responses. The Ministry of Oceans and Fisheries and other agencies are checking in real time the locations and safety conditions of South Korean-flagged ships operating in Middle Eastern waters, according to industry officials. About 40 South Korean-flagged vessels are believed to be operating near waters around the Strait of Hormuz. They have moved to nearby safer waters as a precaution. Still, anxiety among crews remains significant, sources said. While most sailors are continuing their duties calmly, they are reporting heavy psychological stress amid uncertainty over how long the situation will last. “Given the limits on food and supply replenishment due to the nature of shipping, swift government action and support are needed to relocate vessels in the area,” one industry official said. “If tensions around the Strait of Hormuz drag on, we cannot rule out risks to ship safety and possible disruptions to crude oil transport.” 2026-03-04 18:05:02 -
Hanwha Ocean Says It Can Deliver First Canadian Submarine in 2032, Ahead of German Rival Hanwha Ocean, part of a South Korean consortium with HD Hyundai Heavy Industries, said it has emphasized to Canada the potential for broader industrial cooperation as it competes for the Canadian Patrol Submarine Project, or CPSP. The Canadian Press reported on March 3 (local time) that Hanwha Ocean CEO Eo Seong-cheol said the company and the South Korean government view a submarine contract as the start of a deeper industrial relationship between the two countries. Hanwha Ocean and its consortium partner, along with Germany’s Thyssenkrupp Marine Systems, submitted final proposals to the Canadian government on March 2, the deadline. The bids included delivery schedules and investment plans tied to the contract. Eo told the outlet the deal would be a “major catalyst” for bilateral ties. He said the proposal includes investments across areas such as steel, artificial intelligence and space, and would create an average of 25,000 jobs a year from this year through 2044. Eo said the final proposal calls for delivering the first submarine in 2032 and four boats by 2035, and includes what the company described as a firm price estimate. Shipbuilding industry officials said that timeline is faster and more specific than the German bid, which they said pledged to deliver at least two submarines to Canada by 2034. “Hanwha’s proposal is not just a platform proposal,” Eo said. “It is a proposal that combines a clear and accurate delivery plan with a multigenerational industrial partnership, and it fully aligns with Canada’s defense industrial strategy.” He said Hanwha is also interested in other Canadian contracts and is reviewing cooperation in areas including ground defense programs, electronic and AI technologies, and Arctic-related capabilities. Eo cited partnerships with multiple Canadian companies to jointly carry out submarine-related work if it wins. “We have already built strong relationships with capable Canadian companies, and we will expand these partnerships regardless of the contract outcome,” he said. The Canadian Press also carried an interview with TKMS CEO Oliver Burkhard. Burkhard, referring to comments that Canada’s final selection will weigh how much benefit bidders provide to the Canadian economy and industry, said such demands were driven by the actions of Canada’s “southern neighbor,” and were putting pressure on bidders. On Canada’s desire for expanded manufacturing investment in Canada by South Korean and German automakers, he said it should not be assumed that “if there is no car production, it does not help Canada,” adding that everything should not be treated as if it belongs in one basket.* This article has been translated by AI. 2026-03-04 14:12:20