Foundation Hyundai Shipbuilding & Heavy Industries () was established in 1972 by
Chung Ju-yung, founder of the
Hyundai Group. The early establishment of the company was based on the
South Korean government's strong support and Chung's ability to convince partners and clients. The government had a motive to develop the country's industry, moving beyond light manufacturing exports. The government's support included guarantees for foreign loans and
investment in the construction of industrial complexes. In the meantime, Chung played a large role in securing technological assistance and convincing lenders. Chung met
Charles Longbottom of
A&P Appledore, a British ship consulting firm, and secured a recommendation letter to obtain a USD 43 million loan from
Barclays. Afterwards, Chung had to secure an actual ship order to obtain a loan approval from Britain's
Export Credit Guarantee Department. Chung then successfully won the first order from the Greek shipping magnate
George Livanos in 1971. The first order was two
Very Large Crude Carriers (VLCCs), each with a capacity of 259,000
deadweight tons (DWT). The initial development of the company was managed by
Hyundai Construction, a Hyundai Group subsidiary, which also constructed a shipyard in
Ulsan. Hyundai Construction established Hyundai Shipbuilding & Heavy Industries (HSHI) in 1972. After two years, in 1974, HSHI delivered its first ship, Atlantic Baron, to Livanos. HSHI became the world's largest shipbuilding company in 1983.
Separation and Restructuring In the early 2000s, a succession battle occurred among the sons of the Hyundai group founder, Chung Ju-yung. Although the primary feud was between the second son,
Chung Mong-koo, and the fifth son,
Chung Mong-hun, the sixth son,
Chung Mong-joon, separated himself from the group, taking its heavy industries business arm. In 2002, the company was spun off from the Hyundai Group and formed the
Hyundai Heavy Industries Group. In the same year, HHI acquired Samho Heavy Industries from
Halla Group, subsequently renaminig it
Hyundai Samho Heavy Industries. In 2016, HHI was split into four companies as part of its restructuring plan submitted to its creditors to cope with heavy losses in the
business. The restructuring resulted in HHI retaining shipbuilding, offshore, and industrial plants as its core business, with the electric systems, construction equipment, and robot divisions being spun off into separate entities. In 2019, HHI signed a deal with the
Korea Development Bank to acquire
Daewoo Shipbuilding & Marine Engineering (DSME), one of the world's largest shipbuilding companies and HHI's biggest competitor. For this acquisition, HHI launched Korea Shipbuilding & Offshore Engineering (KSOE), an intermediate holding company. KSOE became HHI's surviving entity, while the shipbuilding business itself was spun off into a new entity. The deal required antitrust approval from various countries, including
China, the
European Union,
Japan,
Kazakhstan,
Singapore, and South Korea. Although KSOE successfully obtained approval from
China,
Kazakhstan, and
Singapore, the deal ultimately collapsed after receiving a veto from the EU. KSOE remains the intermediate holding company today, overseeing HHI,
HD Hyundai Mipo, and
HD Hyundai Samho. In late 2025, HD Hyundai Heavy Industries (HHI) merged with
HD Hyundai Mipo (HMD) to create a unified entity aimed at solidifying its position as the world's top shipbuilder. The merger, approved in August 2025 and completed by December 2025, makes HHI the surviving company, combining HMD's mid-sized vessel expertise with HHI's large ship production. ==Businesses==