Electrical Fire Nocks Out Power at Hyundai Samho Shipyard

A major electrical fire that burned for nearly nine hours has caused significant damage at the HD Hyundai Samho shipyard in South Korea. Officials are reporting that all of the power has been turned off to the yard, but fortunately, the fire struck just hours after workers went on summer vacation.

The fire started around 11:20 p.m. local time on July 28 in an underground tunnel that houses a power substation for the yard and connects to key areas of the yard. The substation is located approximately 5 to 6.5 feet underground and was very difficult to reach due to the intense heat and toxic smoke.

The local fire department reports that the shipyard initially tried to fight the fire with internal resources, but it quickly spread. The fire department reports it was on scene overnight and finally declared the fire extinguished around 8:30 a.m. on July 29. They report there is extensive damage to the wiring and substation, but the transformer appears undamaged. They were speculating that the yard would not be able to reuse the existing wiring.

All power has been turned off to the shipyard facilities while they work to recover and assess the level of damage. Workers, however, had gone on summer leave starting July 28, which helped to ensure there were no casualties. Work is suspended as planned for the vacation period.

Work is scheduled to resume from the vacation period on August 8. Yard officials said it was too early to tell when work would resume as they continue to explore the level of damage and needed repairs.

The Samho yard is one of the large facilities in the HD Hyundai shipbuilding operation, with reports that it accounts for 13 percent of the company’s assets. The companies are all running at near capacity based on the strong order flow and tight production schedules.

The yard is one of the large facilities for building LNG carriers. Among the projects that were reported to be underway is construction of the first of two 174,000 cbm LNG carriers for Nakilat as part of the massive QatarEnergy shipbuilding program. Work has also just commenced for eight new container cranes being built got the Gwangyang Port in South Korea.

HD Korea Shipbuilding & Offshore Engineering, the holding company for all the shipbuilding operations, reported on July 24 that it has received so far in 2025 orders for 82 ships worth $11.22 billion, marking 62 percent of its annual target for new orders. Earlier in 2025, it was reported that the company had a nearly three-year backlog. As of the first quarter of the year, the company valued its backlog at over $74 billion.