Source of Facts: Financial Supervisory Service DART / 2026-03-31
Disclosure Type: Execution of Single Sales/Provider Contract (Amendment)
💡 3-Second Summary
Hanwha Ocean has amended its submarine construction contract with the Indonesian Ministry of Defense, shifting the contract end date from March 31, 2026, to Undefined (-). The contract remains inactive due to the non-issuance of a letter of credit by the buyer, though consultations to resume the project are underway following the bilateral summit in October 2025.
📊 1. [Key Disclosure Content & Major Figures Summary]
- Reason for Amendment: Amendment of the contract period’s end date and addition of material information under other investment considerations.
- Amended Items:
- Contract End Date: Modified from (Before) March 31, 2026 ➡️ (After) Undefined (-)
- Other Investment Considerations: Prior text regarding the buyer’s loan agreement was deleted. New disclosures added regarding the contract’s inactive status due to the non-issuance of the buyer’s letter of credit, project delays caused by Indonesia’s defense acquisition policy reviews, and ongoing consultations to resume the project following the bilateral summit during the October 2025 APEC summit.
- Contract Name & Quantity: Construction of 3 Submarines
- Contract Value: KRW 1,162,000,000,000 (Approx. KRW 1.162T)
- This represents 12.0% of the company’s annual sales (KRW 9,644,400,000,000 based on the 2018 consolidated financial statements).
- The contract value was calculated by applying the trading standard exchange rate of 1 USD = 1,139.20 KRW as of April 12, 2019.
- Contract Counterparty: Ministry of Defense of the Republic of Indonesia
- Sales & Distribution Region: Indonesia
- Contract Period: April 12, 2019 ~ Undefined (-)
- Key Contract Terms: Down payment/prepayment included; Payment structured progressively based on construction milestones.
- Initial Contract Execution Date: April 12, 2019
- Current Activation Status: The contract is currently inactive as the buyer’s letter of credit, which is a precondition for contract activation, has not yet been issued.
- Political & Policy Delay Factors and Consultation Status: The project was delayed due to complex political and policy factors, including a general review of Indonesia’s defense acquisition policy. However, relations have improved following the bilateral summit on the occasion of the APEC Summit in October 2025, and consultations to resume the project are underway, with a revised disclosure scheduled to be filed when follow-up procedures are finalized.
- Project Variability Clause: The contract period and final settlement amount are subject to change depending on the contract activation schedule and construction progress.
📈 2. [Expert View: What This Disclosure Means for Investors]
- Transition of Contract End Date to Undefined: This disclosure formally reports the modification of scheduled parameters for the defense construction contract originally signed on April 12, 2019. The contract’s end date has been modified from March 31, 2026, to Undefined (-), updating the overall schedule in the amended filing.
- Sustained Non-activation and Under-the-Hood Drivers: The contract remains in an inactive state as the buyer has not issued the contractually required letter of credit. The delay has been officially verified in the filing as stemming from domestic policy reviews regarding defense acquisitions within Indonesia.
- Bilateral Summit and Pending Revisions: Following the bilateral meetings held during the October 2025 APEC Summit, bilateral relations have improved, leading to active negotiations to resume the project. While the contract value of KRW 1.162 trillion (12.0% of sales at initial signing) and core terms remain on the books, subsequent updates will be registered once specific follow-up procedures are formally established.
📝 Editor’s Comment (by K-STOCK Editor)
Hanwha Ocean’s amended filing regarding its single sales and supply contract officially reports the adjustments in the timeline and current operational status of its submarine construction project with the Indonesian Ministry of Defense. According to the document, the contract remains inactive due to the buyer’s unissued letter of credit, and the formal contract completion date has been shifted to Undefined (-).
The critical variables and primary checkpoints for investors to watch moving forward are the ‘issuance of the required letter of credit’ and the ‘timing of finalized follow-up procedures under the ongoing negotiations.’ Because this project has entered active discussions for resumption following the October 2025 bilateral summit, investors must observe whether a concrete activation notice is registered in future filings.
Consequently, investors should avoid treating the ongoing discussions for project resumption as a finalized or guaranteed positive outcome. It remains essential to monitor the project based on the explicit factual conditions in the filing, which indicate that the contract remains inactive and that both the final schedules and settlement figures are subject to subsequent adjustments depending on when follow-up procedures are formally established.
📢 Disclaimer & Source Information
Source: This content was newly structured and written based on the official data submitted to the Financial Supervisory Service’s Electronic Disclosure System (DART).
Investment Risk Advisory: This information is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell specific stocks. All investment decisions and financial responsibilities rest entirely with the investor.
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