HD Hyundai’s Gunsan dockyard drawn into election debate ahead of June 3 polls

HD Hyundai Heavy Industries' dockyard in Gunsan, North Jeolla Province / Courtesy of HD Hyundai

HD Hyundai Heavy Industries (HHI) is under growing pressure to resume full-scale operations at its dockyard in Gunsan, North Jeolla Province, as politicians are ramping up efforts to win votes ahead of the June 3 local elections.

Since 2017, HD HHI has not built any new ships at the Gunsan dockyard. After reopening in 2023, the facility has only produced shipbuilding blocks shipped to Ulsan.

Despite the dockyard’s private ownership, some politicians have urged the shipbuilder to sell the facility if it does not plan to resume full-scale operations.

Rep. Lee Won-taeg of the ruling Democratic Party of Korea (DPK), who represents Gunsan, Gimje and Buan County, met with Prime Minister Kim Min-seok on Jan. 8 to ask for the central government’s intervention.

According to the lawmaker, the prime minister showed keen interest in the issue and promised to review the proposal.

“I told him the government should consider selling the dockyard if necessary, although resuming full-scale operations is the best option,” Lee said.

Running for the governorship of North Jeolla Province, Lee has been emphasizing the need to sell the dockyard since late last year, mentioning Hanwha Ocean and HJ Shipbuilding & Construction as potential buyers.

“In cooperation with the government and the DPK, I will present countermeasures,” he said in a statement on Dec. 26, 2025.

During a press conference on Dec. 17, Lee also vowed to create 10,000 jobs in Gunsan through a project called “GASGA,” combining Gunsan’s “G” with “MASGA,” short for “Make American Shipbuilding Great Again,” a central government-led program to revive U.S. shipbuilding through Korean investment.

“Of the $350 billion the government committed to investing in the U.S., $150 billion is allocated for shipbuilding,” he said. “Profits from the project will go to Korean companies, so I ask them to reinvest part of those profits in the Gunsan dockyard.”

North Jeolla Province Gov. Kim Kwan-young, a DPK member seeking reelection, also listed the dockyard’s full-scale operation as one of three key strategies for the province’s next 100 years.

“The province is in talks with HD HHI after setting up a task force to revive the Gunsan dockyard,” Kim said at a press conference Thursday. “We are closely monitoring progress on the MASGA project and preparing for possible scenarios, including converting the site into a maintenance, repair and overhaul center for U.S. Navy vessels.”

Last month, the Gunsan city government halted its annual contribution of about 10 billion won ($6.8 million) for transporting shipbuilding blocks from the dockyard to HHI’s main yard in Ulsan — a move seen as retaliation for the company’s refusal to resume full-scale operations.

The lack of new ship construction has deepened Gunsan’s economic woes, which worsened after the closure of a General Motors plant in 2018.

However, HD HHI remains cautious about resuming new ship construction in Gunsan, citing a labor shortage and inadequate infrastructure. The company has also denied speculation about selling the facility.

“The Gunsan dockyard was able to reopen thanks to the efforts of the government, local authorities and residents,” an HD HHI official said. “We will continue its stable operations to promote mutual growth for the regional economy.”