A major fire recently broke out at HD Hyundai Samho, a key shipyard under South Korea’s largest shipbuilding group HD Hyundai. The blaze burned for over 12 hours, cutting off power supply across the entire facility, with production suspension expected to potentially last up to a month. The incident may severely impact the shipyard’s vessel construction progress and annual operational performance.
According to reports, the fire initially erupted around 11:21 PM on July 28 in the underground utility area of HD Hyundai Samho, located in the Daebul National Industrial Complex in Samho-eup, Yeongam County, South Jeolla Province. It originated in the shipyard’s core infrastructure—the underground utility area and substation. Upon receiving the alarm, the Yeongam County Fire Station deployed 22 firefighting units and 62 firefighters. Despite overnight efforts, initial firefighting attempts failed by 7:00 AM on July 29.
That morning, HD Hyundai Samho convened an emergency response meeting. The Yeongam County Fire Station stated plans to investigate the exact cause and extent of damage after extinguishing the fire. Firefighters continued their efforts, finally fully containing the blaze at 11:24 AM the same day—a total firefighting duration of 12 hours and 3 minutes.
The fire occurred in the core production infrastructure supplying all power and water to HD Hyundai Samho. The underground utility area and substation serve as central facilities distributing electricity to 34 substation rooms. Dense smoke, intense flames, and the underground structure’s confined space complicated firefighting efforts, though no casualties were reported.
HD Hyundai Samho stated that the fire’s damage is expected to be extensive. Currently, the shipyard is in a two-week summer collective leave period, temporarily halting production. However, even after the leave ends, immediate production resumption may prove difficult.
A frontline manager at the company noted, “Even after collective leave ends, facility restoration and safety inspections will be required. Restoring power supply could take at least two weeks.” Notably, most subcontractors operating within HD Hyundai Samho’s premises also face concerns over suspended operations, potentially incurring significant financial losses.
A South Korean industry insider commented, “This fire is not a simple accident but a severe infrastructure failure affecting the entire shipyard’s production system. Chain reactions like project delays, delivery disruptions, and subcontractor losses are inevitable.”
The Yeongam County Fire Station suspects the fire started in Panel No. 2 of Substation Units 1–3, located 1.5–2 meters below ground. The exact cause remains under investigation.
HD Hyundai Samho held a press conference that morning, stating, “The company will urgently procure necessary materials through HD Hyundai Group subsidiary Hyundai Electric, aiming to complete restoration during the summer leave period.”
Preliminary estimates suggest repairs at HD Hyundai Samho may take three to four weeks, potentially up to a month. However, given that Hyundai Electric is South Korea’s largest transformer manufacturer, restoration could be expedited. An insider noted, “All replacement components will receive top priority.”
No announcements have been made regarding damage to newbuild projects, but delays in some vessel construction schedules cannot be ruled out. HD Hyundai Samho Heavy Industries stated, “We are investigating the incident’s specifics and damage extent. Management and employees are fully committed to response and recovery efforts to minimize losses.”
HD Hyundai Samho is currently the most efficient, highly automated, and fastest-growing shipyard among HD Hyundai Group’s subsidiaries. Data shows that in Q1 2024, HD Hyundai Samho recorded revenue of KRW 1.9664 trillion (~USD 1.369 billion, RMB 9.98 billion), up 15.3% YoY, with operating profit surging 96.3% YoY to KRW 365.9 billion (~USD 255 million, RMB 1.86 billion). Its operating margin rose to 18.6%, up 7.7 percentage points YoY—far exceeding HD Hyundai Heavy Industries’ 11.3% and HD Hyundai Mipo’s 5.8%.
Earlier this year, HD Hyundai Samho set an annual order target of USD 4.5 billion. After zero orders in Q1, the shipyard gained momentum in Q2, securing 23 orders worth USD 3.45 billion (~RMB 24.7 billion) in under 100 days—including 10 containerships, 2 crude oil tankers, 5 large LNG carriers, and 6 Suezmax crude tankers (157,000 DWT)—achieving ~76.7% of its annual target.
HD Hyundai Samho’s rapid succession of new orders stems from its continuously improved operational efficiency and significantly shortened dock cycles, freeing up more berths and creating opportunities for follow-up contracts.
Clarksons data shows HD Hyundai Samho currently holds 112 orders totaling ~6.22 million CGT, ranking sixth globally and fourth in South Korea among single shipyards.
