South Korea’s KDB Prepares to Offload Hanwha Ocean Stake as Stock Soars

South Korea’s state-owned Korea Development Bank (KDB) is gearing up to sell its 19.5% stake in shipbuilding giant Hanwha Ocean, according to a report from Maeil Business Newspaper. The move comes as the company’s stock skyrockets amid growing U.S. partnerships and a broader resurgence in the shipbuilding sector.

A Phased Exit Strategy

KDB, Hanwha Ocean’s second-largest shareholder, plans to divest its holdings through multiple block sales, with the first round set to begin via a bookbuilding process starting Monday. The bank trails only Hanwha Aerospace, which retains a 30.4% stake, according to LSEG data.

“The timing aligns with Hanwha Ocean’s strongest market performance in nearly a decade—a stark turnaround for a company that was once struggling under the Daewoo Shipbuilding & Engineering banner.”

From Bailout to Breakthrough

Hanwha Ocean, formerly known as Daewoo Shipbuilding & Engineering, was acquired by Hanwha Group in a high-profile 2022 takeover deal. Since then, the shipbuilder has undergone a dramatic revival, with its stock surging 139% this year alone—hitting levels not seen since July 2015.

The rally has been fueled by optimism surrounding U.S. collaboration, including Hanwha Ocean’s acquisition of a Philadelphia shipyard in 2023. That expansion has positioned the company as a key player in American defense and commercial shipbuilding, a sector that’s gaining renewed attention under the Trump administration.

U.S. Partnerships Drive Momentum

Since Donald Trump’s November election victory, the former president has actively courted South Korean shipbuilders, with Hanwha Ocean emerging as a strategic partner. The Philadelphia deal, coupled with broader geopolitical shifts, has bolstered investor confidence, turning the once-beleaguered firm into a market standout.

For KDB, the stake sale represents an opportunity to capitalize on this momentum while gradually stepping back from its role as a major shareholder. The bank’s phased approach suggests a careful balancing act—maximizing returns without destabilizing the stock’s upward trajectory.