[Market Focus] HJ Heavy Industries Surges Over 15% on MASGA Project Hopes

HJ Heavy Industries is surging on August 4. The company has emerged as a beneficiary of the "MASGA (Make American Shipbuilding Great Again) Project," which is the U.S. initiative to revive its shipbuilding industry.

As of 2:15 p.m. on this day, HJ Heavy Industries is trading at 10,110 won, up 1,390 won (15.94%) from the previous trading day. During the session, the stock climbed as high as 10,950 won, setting a new 52-week high.

This rise is interpreted as being influenced by reports that, following the Korea-U.S. tariff agreement, the three major domestic shipbuilders?HD Hyundai, Hanwha Ocean, and Samsung Heavy Industries?have formed a task force (TF) to implement MASGA and are formulating concrete strategies. The reports stated that the TF is considering acquiring small and medium-sized shipyards in Korea.

The TF's project execution roadmap is expected to include: ▲acquisition of domestic small and medium-sized shipyards and their conversion into shipyards specialized for the U.S. Navy ▲establishment or acquisition of new merchant shipyards in the U.S. ▲scope and timing of technology transfer ▲scenarios for utilizing the MASGA fund.

The TF plans to begin full-scale discussions on the MASGA project after the end of the shipbuilding industry's summer vacation period, which falls in early to mid-August.

Previously, the government announced that it had concluded trade negotiations with the United States. As a result, the U.S. will lower its reciprocal tariff on Korea from 25% to 15%.

Korea has decided to invest $350 billion in the United States, including $150 billion from the MASGA fund. MASGA, which stands for "Make American Shipbuilding Great Again," was proposed by the Korean government to the U.S.

The MASGA project will be promoted in various areas, including: ▲construction of new shipyards in the United States ▲training of shipbuilding personnel ▲reconstruction of shipbuilding-related supply chains ▲maintenance, repair, and operations (MRO) related to shipbuilding.

This content was produced with the assistance of AI translation services.