Defense Spotlight: Inside the Arsenal of The KDEF ETF Hanwha Ocean
Charting the Future of Maritime Power in KDEF
Few companies embody South Korea’s rise in global shipbuilding and defense quite like Hanwha Ocean. Founded in 1973 near the Port of Okpo, the company began as a commercial shipbuilder and has grown into a global leader spanning oil tankers, LNG (Liquified Natural Gas) carriers, offshore plants, and advanced naval systems. [1] In 2023, Hanwha Ocean officially joined the Hanwha Group, aligning its industrial scale with a parent company rapidly investing across defense and clean energy. [2]
For investors tracking the PLUS Korea Defense Industry Index ETF (KDEF), Hanwha Ocean represents exposure to both traditional naval platforms and the innovations shaping the future of maritime defense. (as of 9/30/25)
From Tankers to Submarines
Hanwha Ocean first built its reputation in commercial shipbuilding with groundbreaking achievements - delivering the world’s first floating liquefied natural gas (LNG) facility in 2016 and, just four years later, the world’s largest container ship, a massive 23,000-TEU (twenty foot equivalent unit) vessel. [3] In 2025, the company reached another historic milestone with the delivery of its 200th LNG carrier, securing the No. 1 position in global market share. [4]
Hanwha Ocean’s extensive shipbuilding roots still matter. Its track record in Arctic-class LNG carriers, designed to withstand the brutal ice conditions of the Northern Sea Route, proves that the company can build for the toughest environments. [1] That know-how transfers directly to military platforms, where durability and reliability are non-negotiable.
Their commercial shipbuilding knowledge and innovation has also translated into defense breakthroughs. In 2021, Hanwha Ocean became the first South Korean company to design and deliver a fully indigenous submarine, the KSS-III Dosan Ahn Chang-ho. [5] With export orders secured from Indonesia and interest from other navies, Hanwha Ocean is no longer just building for South Korea, it is competing globally. [6]
Surface combat ships have further enhanced Hanwha Ocean’s reputation. The company has delivered frigates to Bangladesh and Thailand, along with logistics support vessels to the United Kingdom and Norway, underscoring its capacity to meet the needs of a wide range of international customers. [5]
Expanding Beyond Korea
Hanwha Ocean’s ambitions extend far beyond Asia. In December 2024, the company partnered with Hanwha Systems to acquire Philly Shipyard in the United States, rebranded as Hanwha Philly Shipyard. [7] This move gives Hanwha Ocean a direct foothold in the U.S. naval ship market.
That expansion is already bearing fruit. In 2024, Hanwha Ocean won U.S. Navy maintenance and repair contracts, including for the USNS Wally Schirra and the USNS Yukon. [8][9] These agreements are significant: they mark the first time a Korean shipyard has serviced U.S. Navy vessels, opening a pathway for deeper defense collaboration.
For investors, this is a crucial detail: defense revenue is often steady, government-backed, and strategically sticky. The U.S. Navy’s decision to trust Hanwha Ocean with its assets speaks volumes about this shipbuilder.
Green Horizons
While defense anchors its strategy, Hanwha Ocean is also pioneering eco-friendly shipping solutions. Its LNG carriers already dominate the global market, and the company is pushing into new frontiers with ammonia, hydrogen, and CO₂ transport vessels. [10] Offshore wind power is another sector, Hanwha Ocean is building ultra-large wind turbine installation vessels (WTIVs), equipped with its smart ship platform HS4. [11]
Hanwha Ocean holds the No. 1 global position in operating very large crude oil carriers (VLCCs), with its fleet sailing across the world’s trade routes. These tankers aren’t just massive, they’re next-generation, eco-friendly vessels equipped with high-efficiency engines and advanced fuel-saving technologies designed to meet International Maritime Organization (IMO) environmental standards. [1]
Digital transformation is also part of their plan. Through automation, AI, and “smart yard” systems, Hanwha Ocean is streamlining shipbuilding while cutting emissions and improving worker safety. [2]
Why It Matters for KDEF
Hanwha Ocean’s addition in KDEF represents more than index mechanics - it’s an opportunity to track a company redefining its future. At the crossroads of proven commercial expertise and defense demand, Hanwha Ocean is reshaping its role in Korea’s industrial and defense landscape.
Through KDEF, investors gain diversified access to the nation’s defense ecosystem while retaining exposure to the strategic upside of Hanwha Ocean’s naval pivot.
At a time when maritime strategy has returned to the heart of global geopolitics, Hanwha Ocean is not simply building ships, it is seeking to build relevance. And within KDEF, that story is already embedded in the portfolio.
View KDEF holdings here.
Holdings subject to change.
Learn more about Hanwha Ocean here.
Sources:
[1] “Hanwha Ocean.” Hanwha. Accessed September 23, 2025. https://www.hanwha.com/companies/hanwha-ocean.do.
[2] “Forbes, Hanwha Ocean.” Forbes. Accessed September 23, 2025. https://www.forbes.com/companies/hanwha-ocean/.
[3] “Hanwha Ocean Achievements.” The Korea Times, February 17, 2025. https://www.koreatimes.co.kr/business/companies/20250217/hanwha-ocean-strengthens-presence-in-global-maritime-defense-sector.
[4] “Hanwha Ocean Delivers 200th LNG Carrier.” Asian Military Review, August 27, 2025. https://www.asianmilitaryreview.com/2025/08/hanwha-ocean-makes-inroads-into-north-america-foc/.
[5] Jae-huyuk Han, “Hanwha Ocean Strengthens Presence in Global Maritime Defense Sector.” The Korea Times, February 17, 2025.
[6] “South Korea’s Submarine Exports Expand with Indonesia Order.” Naval News, July 2021. https://www.navalnews.com/naval-news/2021/07/south-korea-indonesia-submarine-order/.
[7] “Hanwha to Acquire Philly Shipyard.” Philly Shipyard. June 20, 2024. https://www.phillyshipyard.com/hanwha-to-acquire-philly-shipyard/.
[8] “Hanwha Ocean Wins First U.S. Navy Maintenance Contract.” U.S. Naval Institute News, August 27, 2025. https://news.usni.org/2025/08/27/south-korean-shipbuilder-to-invest-5b-in-philadelphia-shipyard.
[9] “Hanwha Ocean Expands U.S. Navy Partnerships.” Business Insider, November 2024. https://www.businessinsider.com/hanwha-ocean-us-navy-maintenance-contract-2024.
[10] “Hanwha Ocean Develops Eco-Friendly LNG, Hydrogen and Ammonia Vessels.” MarineLink, October 28, 2020. https://www.marinelink.com/news/hanwha-ocean-develops-eco-friendly-vessels-486597.
[11] “Hanwha Ocean Secures Wind Turbine Installation Vessel Order.” Offshore Engineer, September 2022. https://www.oedigital.com/news/hanwha-ocean-wtiv-order-2022.
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