After two years of financial restructuring, the smallest of South Korea’s surviving midsized shipbuilders, Daesun Shipbuilding, completed the sale of its primary yard at the end of December 2025, bringing to a close a long heritage in the industry. Started in 1945, Daesun was considered the oldest of the South Korean shipyards but had in recent years struggled with mounting debt.
The sale of the Yeongdo facility in the Busan area was completed on December 26, going to Hanla IMS, a specialized marine equipment manufacturer. Hanla has been growing its operations, including the 2021 acquisition of a yard in Gwangyang and, in 2024, commissioning a 7,000-ton floating dry dock. The company looks to expand its base in specialized equipment as well as further expansion into the ship maintenance, repair, and overhaul sector.
South Korea’s mid-sized shipbuilders had rebounded in recent years based on the strong demand and the lack of capacity at the major shipyards. The sector, however, has also consolidated from more than 20 companies down to just four companies.
Daesun had been in financial difficulties but was able to turn around its business, posting a profit in the first half of 2025. It had been working with creditors since 2023 and, in October, selected Hanla as the leading bidder for the yard. It conducted a “stalking horse” round where other bidders had the chance to beat the proposal from Hanla. Bidding closed in early December, and the sale was completed to Hanla at a reported price of approximately $74 million.
Daesun reports it will use the proceeds to repay debt and complete its financial restructuring. Operations will be consolidated at the Dadaepo shipyard, also in Busan. The company plans to focus on manufacturing ship equipment, hull sections, and superstructures as a subcontractor to the larger builders. It said it might return to shipbuilding in the mid-to longer term.
The remaining three primary midsized shipbuilders are Daehan Shipbuilding, which at mid-year reported a $2.2 billion backlog, as well as HJ Shipbuilding and K Shipbuilding. Reports indicate that K Shipbuilding, the former STX, is also in the final stages of a sale. KHI Investment and United Asset Management Company (UAMCO), South Korea's biggest bad debt investor, took control of the troubled shipbuilder in 2021, and after a turnaround, announced in mid-2025 plans to sell the company. KHI also joined an investor consortium that acquired Daehan Shipbuilding, and in July 2025, announced it would be selling its investment as part of an initial public offering for Daehan.
