HD Hyundai reported second-quarter operating profit exceeding 4 trillion won, supported by strong performance across its shipbuilding, construction equipment, refining and power equipment businesses.

The company said on July 31 that it posted consolidated revenue of 22.4094 trillion won and operating profit of 4.1246 trillion won for the second quarter of 2026. Revenue increased 30.2% from a year earlier, while operating profit surged 262.2%.

For the first half of the year, cumulative revenue reached 42.0113 trillion won and operating profit totaled 6.9594 trillion won.

HD Korea Shipbuilding & Offshore Engineering, the group’s shipbuilding and marine holding company, reported revenue of 8.9270 trillion won and operating profit of 1.6451 trillion won. The results were driven by higher productivity and increased sales of high-margin vessels. Revenue rose 20.2% year over year, while operating profit increased 72.5%.

HD Hyundai Marine Solution generated revenue of 580.4 billion won and operating profit of 97.6 billion won, benefiting from growth in its ship aftermarket (AM), eco-friendly retrofit and digital solutions businesses. Revenue and operating profit increased 24.1% and 17.6%, respectively, from a year earlier.

HD Hyundai Site Solutions, the group’s construction equipment unit, posted revenue of 2.5235 trillion won and operating profit of 272.0 billion won. Results were supported by improving global market conditions, stronger sales of next-generation excavators and increased demand for industrial and defense engines. Revenue rose 17.9% and operating profit climbed 79.6% from the same period last year.

HD Hyundai Oilbank recorded revenue of 9.4774 trillion won and operating profit of 1.8241 trillion won. Improved profitability in lubricant base oils and petrochemicals helped offset volatility in international crude oil prices.

HD Hyundai Electric reported revenue of 1.1418 trillion won and operating profit of 287.0 billion won. Growth was driven by higher sales in its power distribution business and improved profitability in overseas markets. Revenue increased 26.0% year over year, while operating profit rose 37.3%.

An HD Hyundai representative said earnings improved across the group’s major businesses, including shipbuilding, construction equipment, refining and power equipment.

The company said it plans to continue enhancing profitability through selective orders focused on high-value-added vessels, expansion into new markets and ongoing improvements in product mix.

Korea Aerospace Industries (KAI) has been selected to lead a government-backed defense project aimed at developing on-device artificial intelligence (AI) semiconductors and validating their performance on unmanned aerial vehicles.

KAI announced on July 31 that it had been named the preferred bidder in the defense segment of the Ministry of Trade, Industry and Resources' K-On-Device AI Semiconductor Technology Development Program. The project has a total budget of 95.3 billion won and will run for five years.

The program seeks to develop a defense-grade system-on-chip (SoC) and an autonomous control system (ACS) incorporating the chip, then integrate the technologies into an unmanned aircraft platform for performance verification.

The project consists of three subprograms. KAI will serve as the overall project coordinator and lead the first and third subprojects, which include development of a high-speed expendable unmanned aerial vehicle, autonomous control systems, system integration and flight testing. The second subproject, focused on AI semiconductor development, will be led by a domestic fabless semiconductor company.

The consortium includes South Korean AI semiconductor developers, AI model companies and research institutions. Samsung Electronics will be responsible for semiconductor manufacturing.

KAI plans to incorporate the AI chip developed through the project into its proprietary AI pilot system, known as K-AILOT. The company also intends to expand the technology to satellite applications, enabling onboard AI chips to analyze data in real time before transmitting it to ground stations.

KAI has been strengthening its AI ecosystem through partnerships. The company signed a memorandum of understanding with Samsung Electronics last year and another with Team Naver—comprising Naver and Naver Cloud—earlier this month. KAI said it is pursuing the development of a sovereign AI framework that combines AI semiconductors, large language AI models and cloud technologies.

Hanwha Aerospace reported quarterly operating profit exceeding 1 trillion won for the first time, supported by strong defense exports and improved performance from its subsidiaries.

The company said on July 31 that it posted consolidated revenue of 9.2929 trillion won and operating profit of 1.3655 trillion won for the second quarter of 2026. Revenue increased 47% from a year earlier, while operating profit rose 59%.

The ground defense business generated revenue of 2.1075 trillion won and operating profit of 533.0 billion won. Revenue rose 19% year over year, while operating profit increased 2%. In South Korea, growth was driven by higher production volumes of the Cheonho wheeled anti-aircraft gun and the Cheongeom. Overseas, shipments to Poland, Egypt and Middle Eastern customers contributed to earnings.

Hanwha Aerospace said its order backlog expanded to 38.3 trillion won following an additional K9 self-propelled howitzer export contract with Finland signed in April and a supplementary Chunmoo multiple launch rocket system supply agreement with Estonia signed in May.

The aerospace business recorded revenue of 760.0 billion won and operating profit of 37.0 billion won. Revenue increased 17% from a year earlier on higher military program volumes, while the division returned to profitability.

Consolidated subsidiary Hanwha Ocean also contributed significantly to earnings growth. Benefiting from a higher proportion of high-margin vessels, including liquefied natural gas (LNG) carriers, Hanwha Ocean posted revenue of 5.4432 trillion won and operating profit of 736.1 billion won. Revenue rose 65% year over year and operating profit increased 98%.

Hanwha Systems reported revenue of 1.1176 trillion won and operating profit of 103.7 billion won, supported by growing defense exports, including multifunction radar (MFR) systems.

In the second half, Hanwha Aerospace plans to continue production under the second execution contract for Poland's K9 program and proceed with K9 deliveries to Egypt and Australia. The company also plans to participate in the South Korean government's advanced aircraft engine development program based on a prototype unmanned aerial vehicle engine it recently unveiled.

Hanwha Ocean has secured a contract worth 838 billion won to complete the detailed design and construct the lead ship of South Korea's next-generation destroyer program, known as KDDX.

The company disclosed on July 31 that it signed a contract with the Defense Acquisition Program Administration (DAPA) for the KDDX detailed design and lead ship construction project. The contract is valued at 838 billion won and runs through June 30, 2032.

DAPA issued the tender in March and selected Hanwha Ocean as the preferred bidder on July 1 following site inspections and proposal evaluations. Hanwha Ocean subsequently completed negotiations covering technical requirements, contract terms and pricing before signing the final agreement.

KDDX is South Korea's first Aegis-class destroyer program to develop both the hull and combat system using domestic technologies. The government plans to invest approximately 7.8 trillion won to acquire six 6,000-ton destroyers. The Republic of Korea Navy plans to commission the lead ship in 2032 and deploy all six vessels by 2036.

Hanwha Ocean and HD Hyundai Heavy Industries competed for the KDDX contract. HD Hyundai Heavy Industries scored 0.6425 points higher than Hanwha Ocean in the technical evaluation. However, a 1.2-point security penalty related to a military secrets leak case reversed the ranking. Hanwha Ocean ultimately received 93.9542 points, compared with 93.3675 points for HD Hyundai Heavy Industries, a margin of 0.5867 points.

The timing and procurement method for the five follow-on vessels have not yet been determined. An industry official said the remaining ships are expected to be ordered around 2028, although authorities have not decided whether they will be procured through a single package or multiple contracts.

Hanwha Ocean plans to equip the KDDX destroyer with nine domestically developed systems. The design will also incorporate a manned-unmanned integrated combat system, a multi-layered defense architecture and a cyber defense framework. Ship automation technologies aimed at reducing crew requirements will also be included.

Since its launch in 2023, Hanwha Ocean has won contracts for the fifth and sixth Ulsan-class Batch-III frigates and the first and second Batch-IV frigates. The KDDX lead ship award further expands the company's surface combatant shipbuilding portfolio.

Korea Aerospace Industries (KAI) has entered into a strategic partnership with Brazilian aerospace manufacturer Embraer to collaborate on aircraft structures.

KAI announced on July 30 that it signed a memorandum of understanding (MOU) with Embraer on July 28 to pursue strategic cooperation in the aircraft structures business.

Under the agreement, the two companies will expand collaboration in research and development (R&D) of new technologies, with an initial focus on aircraft structures. KAI aims to combine its aerospace engineering expertise with Embraer's aircraft development and manufacturing capabilities to strengthen technological competitiveness and improve manufacturing efficiency.

The companies will also explore cooperation in aircraft design, engineering, manufacturing and quality management. In addition, they plan to identify joint initiatives to optimize manufacturing processes and enhance cost competitiveness.

Kim Jong-chul, president of KAI, said the partnership with Embraer represents an important step in expanding the company's collaboration with leading global aerospace manufacturers.

Hanwha Ocean has signed a joint design agreement with a US naval architecture firm to develop the Fast Sealift vessel, expanding its collaboration with the US shipbuilding industry beyond ship construction to design, workforce development and supply chain initiatives.

The company announced on July 24 that it signed one professional services agreement for the joint design of a global strategic sealift vessel and two memoranda of understanding (MOUs) covering shipbuilding workforce development and supply chain cooperation during the opening ceremony of the Korea-US Shipbuilding Cooperation Center in Washington, D.C. on July 23.

Hanwha Ocean signed the professional services agreement with Leidos Gibbs & Cox, a US naval architecture company, to jointly design the strategic sealift vessel. The agreement expands the partnership beyond the memorandum of understanding signed in April, which focused on strengthening shipbuilding capabilities for the US Navy and allied naval forces, into the joint design phase.

A Fast Sealift vessel is a dual-use platform that operates as a commercial cargo ship during peacetime and can rapidly transport military equipment and supplies during emergencies.

The companies plan to combine Hanwha Ocean's naval shipbuilding expertise with the design capabilities of Leidos Gibbs & Cox to pursue opportunities in both the US and global naval vessel markets. Gibbs & Cox has designed more than 70% of the US Navy's surface combatants built since World War II.

Hanwha Ocean also signed an MOU with Hanwha Philly Shipyard and Delaware County Community College to cooperate on shipbuilding education and workforce development. Under the agreement, the partners will develop instructor training programs for US shipbuilding workers and help expand the pool of skilled labor.

"We will expand cooperation in the areas the United States needs most by leveraging our local production base and play a central role in the MASGA project," said Jeong In-seob, president and head of Management Support at Hanwha Ocean.

LIG Defense & Aerospace (LIG D&A) is expanding cooperation with UK defense contractor Babcock International in next-generation defense sectors, including launch vehicles, precision-guided munitions (PGM), frigates, and unmanned systems.

LIG D&A announced on July 23, 2026, that it signed a Strategic Cooperation Agreement (SCA) with Babcock at the Farnborough International Airshow 2026 held in the United Kingdom.

Under the agreement, the two companies will integrate their global supply chains and pursue the joint development of an AH-140 (Arrowhead 140) frigate platform equipped with LIG D&A systems. The AH-140 is an export-oriented naval platform developed by Babcock based on the Royal Navy’s Type 31 frigate.

The companies will also jointly develop launch vehicles and PGMs while establishing a full life-cycle support system covering maintenance, repair, and overhaul (MRO) and capability upgrades. In addition, collaboration will expand into robotics and autonomous unmanned systems.

“This agreement will serve as an opportunity to secure new competitiveness in the global market,” said Lee Hyun-soo, head of LIG D&A’s Global Business Division. “We will continue to expand our partnership to provide integrated maritime defense solutions.”

LS Electric Co. posted record quarterly revenue and operating profit for the second quarter of 2026.

​The company said in a regulatory filing on July 23 that it reported consolidated revenue of KRW 1.577 trillion and operating profit of KRW 178.5 billion for the second quarter. The figures increased 32.2% and 64.4%, respectively, from a year earlier.

​New orders totaled approximately KRW 2.1 trillion, while the company's order backlog rose by about KRW 1.4 trillion from the previous quarter to KRW 7 trillion.

​Growth was driven by its data center power distribution business and extra-high-voltage (EHV) transformer business. Demand for power distribution solutions increased as investments in artificial intelligence (AI) data centers and electric power grids accelerated. Shipments of EHV transformers also expanded, particularly in North America.

​Second-quarter revenue from EHV transformers climbed 91.2% from a year earlier. Revenue at subsidiary LS Power Solution increased 39%, while North American revenue reached approximately KRW 400 billion, marking a record high on a quarterly basis.

​LS Electric said it plans to expand investment in its manufacturing bases in Utah and Texas to increase local production capacity and further strengthen its presence in the North American market.

Hanwha Vision Co. has obtained South Korea's National Intelligence Service (NIS) security certification for four artificial intelligence (AI) CCTV models, securing a key qualification required to supply products to public-sector organizations and expanding its presence in the government video surveillance market.

​Hanwha Vision said on July 23 that four models in its flagship P Series AI 4K camera lineup received the NIS Security Function Verification Certificate last month. The certified products include Box, Dome, Bullet, and Vandal camera models.

​The Security Function Verification Certificate is a mandatory security qualification for products supplied to public institutions in South Korea. Products must meet NIS security standards covering data protection, software security, and access control.

​Hanwha Vision said it applied government-designated encryption technology throughout the image generation, transmission, and storage processes. The cameras also incorporate security features designed to prevent image tampering and respond to storage device theft.

​The company plans to launch 14 additional products in the second half of this year to expand its supply to the public-sector market.

​"Hanwha Vision will continue investing in AI CCTV product development and strengthening its security technology capabilities," a company representative said.

South Korea has approved a major restructuring plan involving Lotte Chemical, Hanwha Solutions and DL Chemical, clearing the way for the integration of their petrochemical operations in Yeosu. The move marks the country's second government-approved restructuring of the domestic petrochemical industry, aimed at reducing oversupply and shifting production toward higher-value products.

On July 22, the Ministry of Trade, Industry and Resources approved the business restructuring plan jointly submitted by Lotte Chemical, Hanwha Solutions, DL Chemical and Yeochun NCC. The companies filed the application in March under the Corporate Vitality Improvement Act, which provides government support for corporate restructuring.

The plan calls for Lotte Chemical to spin off its Yeosu petrochemical complex before merging the new entity with Yeochun NCC, the naphtha cracking joint venture between Hanwha Solutions and DL Chemical. The resulting integrated company will be jointly operated by Lotte Chemical, Hanwha Solutions and DL Chemical.

As part of the restructuring, Yeochun NCC's No. 2 plant will be shut down, while No. 1 plant will be integrated with Lotte Chemical's Yeosu facility. The companies expect the move to reduce annual ethylene production capacity by approximately 1.4 million metric tons, helping alleviate oversupply in South Korea's petrochemical industry.

The integrated company also plans to consolidate the partners' competitive downstream businesses and shift its portfolio toward higher-value products, including low-density polyethylene (LDPE) for medical applications and polyolefin elastomers (POE) used in automobiles and power cables.

The approval follows the government's endorsement of the Daesan Industrial Complex restructuring in February, making it the second petrochemical restructuring project approved this year. The government said it will support the restructuring through financial assistance, tax incentives and regulatory approvals.

LS Marine Solution, a subsidiary of LS Cable & System, has completed a major upgrade of its cable-laying vessel GL2030, significantly increasing its cable carrying capacity to strengthen its competitiveness in large-scale offshore wind and high-voltage direct current (HVDC) transmission projects.

The company announced on July 22 that it has increased the vessel's submarine cable carrying capacity from 4,000 metric tons to 7,000 metric tons.

The upgrade enables the GL2030 to install submarine cables over distances exceeding 100 kilometers in a single continuous operation, reducing the number of voyages required for a project and lowering both construction time and costs.

LS Marine Solution expects demand for submarine power and telecommunications cable installation to increase as South Korea expands offshore wind generation, advances the West Coast HVDC transmission project and invests in new international submarine communications networks.

The company plans to deploy the GL2030 primarily for coastal projects while assigning its 13,000-ton next-generation cable-laying vessel, currently under construction, to long-distance and large-capacity projects, further expanding its offshore construction capabilities.

"We will expand our participation in domestic power grid projects, including the West Coast HVDC Energy Highway, while strengthening our presence in the US and European markets," an LS Marine Solution official said.

Hanwha Aerospace has completed a $500 million US dollar-denominated public bond offering, becoming the first South Korean defense and aerospace company to issue an overseas public bond.

The company announced on July 21 that it had finalized the issuance of $500 million in fixed-rate notes with a three-year maturity.

The bond offering attracted approximately $3.3 billion in orders from investors across Europe and Asia, representing demand of roughly seven times the issuance size.

In June 2026, S&P Global Ratings assigned Hanwha Aerospace a long-term issuer credit rating of A-, making it the first South Korean defense and aerospace company to receive an A-range long-term rating from the global credit rating agency.

Hanwha Aerospace said it plans to use the proceeds from the bond issuance for working capital and the repayment of existing debt.

The transaction was jointly arranged by Citigroup Global Markets, Crédit Agricole CIB, and UBS.

"We successfully completed our inaugural overseas public bond offering with strong interest from international investors," a Hanwha Aerospace official said. "Supported by a stable funding base, we will continue strengthening our competitiveness in global markets."

Hanwha has partnered with the Korea Development Bank (KDB) and the Korea Credit Guarantee Fund (KODIT) to provide financing support for facility investments by suppliers in the defense and shipbuilding industries.

The company announced on July 20 that it signed a memorandum of understanding on a shared-growth financing program with KDB and KODIT at KDB's headquarters in Yeouido, Seoul.

The program will support small and mid-sized suppliers of four Hanwha affiliates: Hanwha Aerospace, Hanwha Ocean, Hanwha Systems and Hanwha Engine.

Under the agreement, the Hanwha affiliates will contribute funds to KODIT and recommend eligible suppliers. KODIT will provide preferential credit guarantees to those companies, while KDB will extend facility investment loans backed by the guarantees.

The financing will enable participating suppliers to fund investments such as expanding production equipment and building new manufacturing facilities. Hanwha said it will identify suppliers requiring financial support and assist them throughout the financing process.

"We will identify suppliers that need facility investment and help them make full use of this financing program," said Kim Hee-cheul, chief executive officer of Hanwha Ocean.

Korea Aerospace Industries (KAI) has agreed with Airbus Helicopters to expand cooperation on next-generation rotorcraft technologies.

KAI announced on July 20 that it signed a joint statement with Airbus Helicopters at the company's headquarters in Marignane, France, to strengthen collaboration in the rotorcraft business.

The two companies have worked together in the rotorcraft sector for nearly two decades, beginning with the development of the KUH-1 Surion in 2006. Their cooperation later expanded to the development of the Light Armed Helicopter (LAH) Miron, and they are currently collaborating on the Marine Attack Helicopter (MAH) program.

Under the new agreement, the companies will strengthen technical support and parts supply systems to ensure the stable operation of the Surion and Miron helicopter fleets. The initiative is intended to improve supply chain resilience, increase aircraft availability and enhance maintenance efficiency.

The partnership will also expand into next-generation rotorcraft technologies. KAI and Airbus Helicopters will jointly explore technology development and business opportunities related to manned-unmanned teaming (MUM-T) and unmanned aircraft systems (UAS) to address future battlefield requirements.

"Airbus Helicopters has been our key partner over the past 20 years in the development of the Surion and Miron helicopters," said Kim Jong-chul, chief executive officer of KAI. "We will further expand our cooperation in future technologies, including AI-based manned-unmanned teaming systems."