Shares of Hanwha Ocean dropped more than 23% on Tuesday morning. The sell-off followed Canada's decision to select a German bid to replace its aging submarine fleet, rejecting the South Korean shipbuilder's proposal.

This loss removes a massive potential contract from the company's order book. The sudden valuation drop reflects investor anxiety over the firm's ability to secure high-value international defense contracts against European competitors.

Losses of this scale suggest the market had already priced in a victory. The rejection signals a competitive disadvantage for Hanwha Ocean in the North American defense market, limiting its growth projections for the naval division.