South Korea and the United States are in talks over a strategic partnership in shipbuilding, which may involve investments in modernizing American shipyards and expanding support for U.S. Navy vessel maintenance. The initiative is seen by Seoul as a leverage point to negotiate better tariff terms.
According to government and industry sources, the proposal aligns with former President Donald Trump’s efforts to revive the aging U.S. shipbuilding industry in response to China’s rapid expansion. China has become the world’s largest shipbuilder by volume and leads in naval power, with 234 warships compared to 219 in the U.S. Navy.
“South Korea can use shipbuilding as a lever in tariff negotiations,” said Kim Suk-kyun, former Commissioner of the Korea Coast Guard.
🇰🇷 South Korea, the world’s second-largest shipbuilder, is actively investing in U.S. maritime infrastructure. In 2023, Hanwha Group acquired Philly Shipyard, and its subsidiary Hanwha Ocean has secured multiple maintenance contracts with the U.S. Navy. The conglomerate also received U.S. approval to increase its stake in Austal, which operates a key naval shipyard in Alabama.
This year, HD Hyundai formed partnerships with U.S.-based Huntington Ingalls and Edison Chouest Offshore to jointly build container vessels and defense-related ships in the U.S.
However, challenges remain:
– U.S. shipyards face labor shortages and limited access to parts
– The Jones Act and the Byrnes-Tollefson Amendment restrict foreign shipbuilders from constructing commercial or military vessels for U.S. operations
– Strong political will is needed to allow exceptions or create hybrid cooperation models, such as module construction or designated foreign zones
💬 Seoul has proposed a “Korea–U.S. manufacturing alliance” focused on shipbuilding, which has caught the attention of Washington amid concerns over China’s naval dominance.
🔙 A historical footnote:
In 1998, Donald Trump visited the Daewoo Shipbuilding yard in Geoje (now Hanwha Ocean). According to Lim Moon-kyu, a former senior executive who hosted the visit, Trump was deeply impressed, describing the view from the shipyard’s 100-meter crane as “wonderful.”
“The visit left a lasting positive impression,” Lim said, adding that shipbuilding may be the strongest card South Korea can offer in talks with the U.S.
