Gunsan Shipyard Takes First Step Toward Normalization After 9 Years

The Gunsan shipyard, a symbol of regional economic downturn after its operations ceased nine years ago, is poised for a revival. HD Hyundai Heavy Industries and JOSUN Heavy Industries have signed a definitive contract for asset acquisition and business cooperation, marking a crucial step toward the shipyard's full normalization.

This agreement follows a memorandum of understanding signed in March and subsequent site inspections and negotiations. The finalization of the asset transfer process signifies that the normalization project is entering a substantive implementation phase. The shipyard, built by Hyundai Heavy Industries in 2010, halted operations in 2017 due to a slump in the shipbuilding industry, becoming a stark reminder of the economic hardship in the North Jeolla Province.

“

Gunsan shipyard has taken its first step toward becoming a shipyard that directly builds ships, moving beyond block production.

While block production resumed in 2023, restoring the shipyard's core function of building ships remained elusive until now. The new contract paves the way for the Gunsan facility to transition from being merely a block production base to a full-fledged shipyard. JOSUN Heavy Industries plans to complete the asset acquisition and ownership transfer within the year, followed by facility and production process upgrades.

Shipbuilding is slated to commence in phases starting in 2027, with full-scale new ship production anticipated by 2028. Initially, the shipyard will maintain block production through orders from Hyundai Heavy Industries while improving facilities. It aims to establish an independent shipbuilding system leveraging HJ Heavy Industries' design and construction expertise. The North Jeolla provincial government and Gunsan City have pledged support, viewing this as a turning point for the shipyard's complete recovery and a potential catalyst for job creation and regional economic revitalization.

“

We will actively provide support to achieve tangible results for residents, such as early normalization and the creation of quality jobs.