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South Korea Extends Compliance Measures on Hanwha Shipbuilding Deal Until 2029

By  |  April 28, 2026

South Korea’s antitrust regulator announced Tuesday that it has extended the compliance period for corrective measures tied to a major shipbuilding acquisition led by Hanwha Group, marking a rare move aimed at curbing potential anticompetitive practices.

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    The Korea Fair Trade Commission (KFTC) said the measures, originally imposed following the 2022 acquisition of a controlling stake in Daewoo Shipbuilding & Marine Engineering, will now remain in effect for an additional three years. The shipbuilder has since been renamed Hanwha Ocean.

    The extension means that Hanwha Aerospace Co., Hanwha Systems Co., and Hanwha Ocean will continue to face restrictions on certain business practices, including discriminatory pricing for ship components, until May 2, 2029, according to a statement from the commission. The regulator added that the compliance period could be prolonged by up to two more years depending on future assessments of market conditions and legal developments, per a statement.

    The KFTC first introduced corrective measures in 2023 after Hanwha Aerospace and five affiliated firms acquired a 49.3 percent stake and management control of the then-struggling shipbuilder. At the time, the regulator expressed concerns about the potential for market dominance, particularly in defense-related ship components.

    Related: Industrial Policy in Motion: Lessons From A Century of Shipbuilding

    This latest decision represents the first instance in which the KFTC has extended the enforcement period of remedies imposed following a corporate merger, highlighting ongoing concerns about competition in the sector.

    The commission said it still sees risks of anticompetitive behavior, including the possibility of discriminatory information sharing and pricing strategies that could disadvantage competitors, according to a statement. Officials emphasized that maintaining fair competition remains a priority as the market evolves.

    Initially, the corrective measures applied broadly to naval vessels and 10 different ship component markets. However, the KFTC has since narrowed the scope to cover naval vessels and eight component markets, reflecting adjustments made during its latest review, per a statement.

    When the acquisition was first evaluated, the regulator warned that Hanwha could leverage its strong position in the defense industry to dominate the naval vessel components market.

    Source: Korean Times