The development follows U.S. President-elect Donald Trump's recent emphasis on maritime cooperation with South Korea during his conversation with President Yoon Suk Yeol on Nov. 7.
"We need to closely cooperate with Korea not only in ship exports but also in maintenance, repair and operations," Trump said during the call, according to industry sources on Wednesday.
The U.S. Navy's growing interest in Korean shipbuilding expertise comes as China controls about 60 percent of global shipbuilding orders in 2023, raising concerns about maritime supremacy in Washington.
The U.S. shipbuilding industry has seen a significant decline since the Merchant Marine Act of 1920, also known as the Jones Act, which lead to monopolies of domestic shipbuilders, dimming global competitiveness.
With its global market share dropping to 0.13 percent last year from dominating the sector in the mid-20th century, the U.S. has now turned its attention to cooperating with allies, including shipbuilding global header Korea.
Both South Korean shipbuilders HD Hyundai Heavy Industries and Hanwha Ocean secured Master Ship Repair Agreements (MSRA) with U.S. Naval Supply Systems Command (NAVSUP) this year.
HD Hyundai Heavy Industries marked its entry into the MRO sector in 2022 by securing its first contract with the Philippine Navy and recently signed a cooperation agreement with Poland's biggest shipyard Remontowa.
Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, has already secured two U.S. Navy maintenance projects this year, including the 40,000-ton dry-cargo ship Wally Schirra and the U.S. 7th Fleet's Yukon.
Naval vessel maintenance typically requires five to six months of work, with submarine projects potentially extending beyond a year, industry experts said.
U.S. Navy Secretary Carlos Del Toro visited both companies' shipyards in February, while Admiral Stephen Koehler, commander of the U.S. Pacific Fleet, conducted a site inspection on October of the Wally Schirra maintenance project at Hanwha Ocean's facilities.
The high-level visits were notably attended by key industry figures including Hanwha Group Vice Chairman Kim Dong-kwan and HD Hyundai Vice Chairman Chung Ki-sun, reflecting the strategic importance of the naval partnerships.
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