Fire forces production suspension at HD Hyundai Samho yard in South Korea

A fire at a substation within the HD Hyundai Samho shipyard in Yeongam-gun, South Korea, on July 28 has forced a temporary suspension of all shipbuilding production at the facility.

HD Hyundai Samho is a major subsidiary of HD Korea Shipbuilding and Offshore Engineering (HD KSOE), accounting for over 13 per cent of the parent company's total assets. HD Hyundai Samho's total assets amounted to over KRW8.39 trillion ($5.97 billion), according to its financial statements as of the end of 2024.

The production halt coincides with the start of the shipyard's scheduled summer vacation, which runs from July 28 to August 8. The company stated it is currently investigating the circumstances of the fire and assessing the detailed damage situation. An expected date for the resumption of production has not yet been confirmed and will be announced once determined.

The company confirmed it is covered by a comprehensive property insurance policy, with an insured amount of KRW1.116 trillion. The direct and indirect losses from the fire are still being confirmed, and the amount of the insurance claim will be determined by the insurer's loss assessment. The company stated it is working to minimise losses through "prompt" recovery and restoration.