On Tuesday, Hanwha Ocean’s stock experienced a remarkable 10% increase following an announcement by U.S. President Donald Trump. The President revealed that the company has been chosen to assist in constructing new frigates for the U.S. Navy.

During a press briefing, Trump disclosed that these warships are slated to be assembled at the Hanwha Philly Shipyard located in Philadelphia. This facility, acquired by the South Korean firm in 2024, is set to benefit from a significant $5 billion investment. This move is part of South Korea’s ambitious $150 billion commitment to shipbuilding.

This shipbuilding initiative is a segment of a larger U.S.-South Korea trade agreement. The deal facilitated a reduction in tariffs on South Korean exports to 15%, reciprocated by Seoul’s pledge to invest $350 billion, among other terms.

Hanwha Ocean stands as a leading force in South Korea’s shipbuilding industry. The company is renowned for its proficiency in crafting both commercial vessels, such as LNG carriers, and military naval platforms that include submarines and surface ships.

South Korean defense stocks have been on a roll this year, with major defense players such as Hanhwa Aerospace and Hyundai Rotem gaining over 170% and 270%, respectively year to date. Hanhwa Ocean has surged more 220% so far this year.

Last week, the U.S. Navy announced the FF(X) class of ships — smaller combatant ships — which it said will complement larger, multi-mission warships and enhance operational flexibility around the globe. Secretary of the Navy John Phelan said the new frigate class would be part of Trump’s envisioned “Golden Fleet.”

Trump on Monday stateside said that the U.S. Navy will build two new “Trump-class” battleships, and may expand the count to as much as 25 such ships.

The U.S. president described the ships as “some of the most lethal surface warfare ships,” adding that the they will “help maintain American military supremacy, [and] inspire fear in America’s enemies all over the world.”

Describing them as “the fastest, the biggest, and by far, 100 times more powerful than any battleship ever built,” the Trump-class battleships are envisioned to be equipped with hypersonic weapons, lasers, cruise missiles, and nuclear weapons, according to the U.S. President.