U.S. President Donald Trump has expressed interest in collaborating with South Korea’s shipbuilding sector, emphasizing the importance of maintenance, repair, and operations (MRO) for U.S. naval vessels.
During a phone call with South Korean President Yoon Suk Yeol in November, Trump praised the country’s “world-class naval shipbuilding capabilities” and emphasized the need for closer cooperation.
Korean shipbuilders are eager to play an increasingly prominent role in supporting American naval operations.
Hanwha Ocean has already made significant strides in the U.S. market, winning two naval MRO contracts in 2024, including work on the 40,000-ton dry-cargo ship Wally Schirra and the U.S. 7th Fleet’s Yukon. The company further solidified its presence by acquiring Philly Shipyard in Philadelphia, a move that provides a strategic base for expanding its naval contract portfolio.
Meanwhile, HD Hyundai Heavy Industries announced plans to enter the U.S. naval vessel market, marking its debut in American military vessel MRO projects. The company intends to participate in two to three pilot projects this year, with bidding slated to begin in February. Following Hanwha Ocean’s lead, HD Hyundai is also considering investing in U.S. shipyards to enhance its competitiveness.
The push for South Korean involvement comes as the U.S. shipbuilding industry struggles with capacity constraints to meet rising Navy requirements.
Amid concerns over China’s dominance in global shipbuilding - accounting for 60 percent of orders in 2023 - the U.S. has increasingly turned to strategic allies like South Korea to bolster its maritime capabilities.
The decline of the U.S. shipbuilding industry, partly attributed to the Merchant Marine Act of 1920 (the Jones Act), has led to monopolistic practices among domestic shipbuilders, eroding global competitiveness and fueling reliance on international partners.
South Korean shipbuilders also stand to benefit from growing U.S. demand for liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers, areas where they hold a clear technological edge.
“South Korea’s shipbuilding expertise, coupled with its ability to deliver high-quality LNG and naval vessels, positions the country as a critical partner in addressing U.S. maritime challenges,” said an industry analyst.
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