▶ Chung Kisun, Executive Vice Chairman of HD Hyundai, welcomed Secretary John Phelan and discussed cooperation on Korea-US shipbuilding ▶ Boarded the advanced Aegis destroyer ‘Jeongjo the Great’ built by HD Hyundai Heavy Industries and visited the construction site of the No. 2 Aegis destroyer, ‘Dasan Jeong Yak-yong’, confirming shipbuilding capabilities of the global industry leader During his visit to South Korea, John Phelan, Secretary of the US Navy, visited HD Hyundai Heavy Industries to observe operations and capabilities of a global industry leader in shipbuilding and discussed potential cooperation between South Korea and the U.S. The newly confirmed U.S. Secretary of the Navy, John Phelan, visited HD Hyundai Heavy Industries’ Ulsan headquarters on Wednesday, April 30, HD Hyundai Heavy Industries shared.  Chung Kisun, Executive Vice Chairman of HD Hyundai, the parent company of HD Hyundai Heavy Industries, welcomed John Phelan in person and introduced the company’s world-class shipbuilding technologies. They also exchanged opinions on areas of cooperation between Korea and the United States. After touring the shipyard for commercial ships, John Phelan visited HD Hyundai Heavy Industries’ Naval & Special shipyard where state-of-the-art naval warships, including the world's most advanced Aegis destroyers, are built. Phelan boarded ‘Jeongjo the Great’ – built by HD Hyundai Heavy Industries and delivered to the Republic of Korea Navy last November – where the Captain introduced him to the outstanding performance and advanced operational capabilities of the world’s most advanced Aegis destroyer.  Secretary Phelan then looked around other major ships, including the No. 2 Aegis destroyer, ‘Dasan Jeong Yak-yong’ which is scheduled to be launched later this year. After the visit Secretary Phelan remarked, “Leveraging the expertise of these highly capable shipyards enables timely maintenance and repairs for our vessels to operate at peak performance.” Executive Vice Chairman Chung added, “The United States and South Korea share a friendship by blood and are the best of allies. With our advanced technologies and shipbuilding capabilities, we will support the country’s effort to revitalize the shipbuilding industry.” Earlier this month, the Trump administration signed an executive order to rebuild the U.S. shipbuilding industry and expressed its willingness to cooperate with allies. Meanwhile, HD Hyundai signed a memorandum of understanding with Huntington Ingalls, the largest U.S. defense shipyard, earlier this month with the goal to improve shipbuilding productivity and cooperate on advanced shipbuilding technologies. In addition, HD Hyundai Heavy Industries’ executives, including Joo Wonho, Head of the Naval & Special Ship business, visited Huntington Ingalls on April 22 to further discuss cooperation between the two parties.

▶ Sales reached 906.8 billion won, with an operating profit of 41.7 billion won, reflecting a decline compared to the previous year.   ▶ Tailored strategies for each region are in place... Continued growth noted in India and Brazil, with signs of demand recovery in China.   ▶ “Revamping portfolios and cutting costs to navigate unpredictable market conditions.” On Monday, April 28, HD Hyundai Construction Equipment published its first quarter results for 2025, reporting sales of 906.8 billion won and an operating profit of 41.7 billion won. While sales in key emerging markets, such as India and Brazil, have shown solid growth, the recovery in demand from developed markets has been slower than anticipated, leading to a 7.4% year-on-year decline in sales and a 22.3% drop in operating profit. Regionally, the company reported significant improvements in India, Brazil, and China. Sales in India and Brazil increased by 11% and 8%, respectively, influenced by government-led public infrastructure investments. In China, revenue saw an impressive 33% increase, driven by a combination of stimulus measures and equipment replacement cycles. As demand for products in emerging markets fluctuates in response to mineral resource prices, HD Hyundai Construction Equipment intends to boost its market share with customized sales strategies tailored to each country's needs.  In contrast, sales of new products in advanced markets have declined due to ongoing uncertainties associated with U.S. tariffs and fluctuating interest rates. However, the aftermarket (AM) business is experiencing stable growth, fueled by the demand for replacement parts for older equipment. “To navigate the uncertain market landscape, we plan to reorganize our product portfolio in developed markets by emphasizing high-margin equipment while focusing on maintaining profitability and minimizing costs,” stated an official from HD Hyundai Construction Equipment. “We are committed to strengthening our presence in key emerging markets such as India and Brazil, and we aim to enhance our global competitiveness through the development of next-generation models.”  

▶ Participated in Latin America's largest defense exhibition SITDEF Perú, showcasing submarines and frigates for export ▶ Signed agreement with Peruvian state-owned shipbuilder SIMA to jointly develop 1,500-ton customized submarine ▶ Obtained AIP for self-developed medium-sized submarine HDS-1500 and signed MOU with UNI for shipbuilding research and development HD Hyundai Heavy Industries is launching its entry into the Latin American submarine market with its proprietary submarine. HD Hyundai Heavy Industries announced on the Monday, April 28th that it is participating in SITDEF 2025, Latin America's largest defense exhibition held in Lima, Peru from the 24th to the 27th local time. At the exhibition, HD Hyundai Heavy Industries jointly set up a 220㎡ exhibition booth with LIG Nex1, a global defense company, showcasing next-generation frigates ordered by the Peruvian Navy in April last year and next-generation submarines being jointly developed with the Peruvian government. HD Hyundai Heavy Industries also held a promotional seminar for its self-developed export submarines at the exhibition. The event was attended by key defense officials from both countries, including Peru's Defense Minister, Navy Chief of Staff, as well as the Director of Policy at the Republic of Korea Navy Headquarters and the Head of the Maneuver Program Department of the Defense Acquisition Program Administration. LIG Nex1 and others also participated in the seminar, introducing key systems and solutions to be installed on the submarine. Plans to expand naval vessel cooperation with Peru were also discussed. On the 24th local time, HD Hyundai Heavy Industries signed a “Memorandum of Agreement (MOA) for Joint Development of Peruvian Submarines” with Peruvian state-owned shipbuilder SIMA at the HD Hyundai Heavy Industries exhibition booth. This agreement is a follow-up measure to the Memorandum of Understanding (MOU) for submarine joint development signed at Peru APEC 2024 last November. The core of the MOA is to develop customized submarines based on HD Hyundai Heavy Industries' cutting-edge technology and Peru's maritime defense capabilities as part of the Peruvian Navy's aging fleet renewal program. The goal is to replace aging submarines with a 1,500-ton medium-sized vessel based on HD Hyundai Heavy Industries' HDS-1500 model. Additionally, HD Hyundai Heavy Industries signed an MOU with UNI, Universidad Nacional de Ingeniería, in Lima to promote education and research in the shipbuilding industry. Through this agreement, they plan to advance research and development of advanced technologies in shipbuilding and naval defense sectors and pursue various cooperative projects including talent development. Meanwhile, HD Hyundai Heavy Industries obtained Approval in Principle (AIP) on the 25th local time, from the global classification society DNV for the HDS-1500 submarine showcased at this exhibition. This follows the AIP received last year from DNV for the 2,300-ton submarine HDS-2300, expanding HD Hyundai Heavy Industries' K-submarine export lineup in the global market. "HD Hyundai Heavy Industries is expanding its cooperative relationship from surface vessels to submarines based on a long-term partnership with the Peruvian Navy. HD Hyundai Heavy Industries has completed all preparations to enter the Latin American market with Peru as its stronghold." said Joo Wonho, Head of the Naval & Special Ship Business Unit at HD Hyundai Heavy Industries. ■About SITDEF: The International Exhibition of Defense Technology and Disaster Prevention (Salón Internacional de Tecnología para la Defensa y prevención de desastres, SITDEF) is Latin America's largest defense exhibition held in Lima, Peru biennially since 2007. This year's exhibition was held from April 24th to 27th local time, with participation from over 170 global defense companies from 27 countries. Advanced defense technologies including major platforms for army, navy, and air force, missiles, air defense systems, and electronic warfare were showcased.