By Ian Werther in News — 13 Mar 2026

Gunsan Shipyard Asset Transfer MOU Could Create Up to 10,000 Jobs

Gunsan’s mayoral candidate Kang Im-joon welcomed a memorandum of understanding on the asset transfer of Gunsan Shipyard, signed by Eco Prime Marine Pacific, described as the largest shareholder of Hyundai Heavy Industries and HJ Heavy Industries. The agreement concerns the transfer of the shipyard’s assets as part of a broader deal.

Kang said the signing signals the start of full operations at the Gunsan Shipyard, though he noted that due diligence and the main contract still remain to be finalized before the transfer is complete.

Heavy-duty floating crane serving the Panama Canal authority. It weighs 5,000 tons, is 374 feet high, and can lift 350 tons. The crane was built in Germany in 1941 and siezed by the US after the war. It then served at the Long Beach Naval Shipyard until it was transferred to the Canal in 1996. You can't see from this angle, but it is actually floating on an inlet of the Chagres River along the Canal route.
Because of its history, it is also named "Herman the German". — Representative image for context; not directly related to the specific event in this article. License: CC BY-SA 2.0. Source: Wikimedia Commons.

He estimated that if HJ Heavy Industries proceeds with the acquisition and operation of the plant, the project could generate about 5,000 direct jobs, with total employment rising to around 10,000 when indirect positions are included.

The candidate expressed gratitude to Gunsan residents for their patience and support, calling the milestone a realization of the city’s long-standing wish for the shipyard to operate at full capacity.

For readers unfamiliar with the setting, Gunsan is a coastal city in North Jeolla Province, western Korea, home to one of the country’s notable shipyards. Eco Prime Marine Pacific, meanwhile, is described as the largest shareholder of Hyundai Heavy Industries and HJ Heavy Industries.

This view of the Puget Sound Bridge & Dredging Company shipyard, taken on September 20, 1917 shows a four-masted schooner and other vessels under construction. The yard is filled with stacks of heavy milled lumber from the Pacific Northwest's huge trees. Shipyard workers used the hoists (left center) to lift the lumber and move it from one place to another.
This photograph is part of an album of Puget Sound Bridge & Dredging Co. projects; many of their projects were documented by noted Seattle photographer Frank H. Nowell. Puget Sound Bridge & Dredging Company (later Lockheed Shipbuilding and Construction Company) was established in Seattle in 1889 as a branch of the San Francisco Bridge Company. In its earlier days, the firm built many wooden ships, including sternwheeled steamboats for the Yukon gold rush and multi-masted freighters.
Inscribed on negative: SEP.20-1917
Embossed on recto: Frank H. Nowell, 1212 Fourth Ave., Seattle, U. S. A.
Subjects (LCTGM): Boat & ship industry--Washington (State)--Seattle; Puget Sound Bridge & Dredging Company — Representative image for context; not directly related to the specific event in this article. License: Public domain. Source: Wikimedia Commons.

The memorandum of understanding is a non-binding step that paves the way for asset transfer, but it does not finalize ownership. The completion of due diligence and the signing of a main contract are still required, after which HJ Heavy Industries would be expected to operate the yard.

Why this matters to the United States: Korea’s shipbuilding sector is a crucial global supplier for commercial fleets and a potential partner in defense-related shipbuilding. A successful transfer and rapid ramp-up at Gunsan could affect global shipbuilding timelines, pricing, and supply chains, with potential implications for U.S. shipping interests, fleet operators, and allied defense procurement. The development also reflects ongoing consolidation in Asia’s maritime industry, a factor shaping international trade and security dynamics.

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