The Future of US-South Korea Shipbuilding Cooperation

In what is described as a “historic moment”, the South Korean shipbuilding industry has held talks with the United States Trade Representative (USTR) to explore opportunities for vessel construction cooperation between the two nations.

As disclosed, Chung Kisun, Executive Vice Chairman of HD Hyundai, met up with USTR Ambassador Jamieson Greer on May 16, seeking to find the “most favorable” pathways for the United States and South Korea to collaborate amid tumultuous geopolitical waters.

The meeting, which took place during the US delegation’s official visit to the East Asian nation for a meeting of trade ministers from the Asia-Pacific Economic Cooperation (APEC) grouping, is reportedly the first time that the two sides have held such discussions.

“We deeply appreciate the United States’ commitment to rebuilding its shipbuilding industry. HD Hyundai stands fully prepared and willing to contribute wherever our capabilities are needed,” Chung highlighted.

According to the shipbuilding heavyweight, which is said to construct around 50 vessels per year, discussions were held regarding the ongoing partnership between HD Hyundai and US defense shipbuilder Huntington Ingalls, part of Huntington Ingalls Industries (HII), with proposals to further the cooperation.

As informed, this is envisioned to be executed through multiple initiatives, such as joint technology development, vessel construction projects, and workforce training programs. The significance of diversifying the US port equipment supply chain through closer US–Korea relations was also said to have been a burning topic during the meeting.

The talks between the United States of America and South Korea come on the heels of a major announcement by the US government, currently spearheaded by the second-time-in President Donald Trump. Seeking to “correct the wrongs”, President Trump declared this year that legislation and initiatives would be implemented in order to rejuvenate American shipbuilding and “restore its former glory”.

This came via several approaches. In December last year, US lawmakers unveiled a new act, called the New SHIPS for America Act, seeking to ‘bolster’ America’s commercial maritime industry and improve its competitiveness amid China’s mounting influence on this stage. The bill was reintroduced at the beginning of May this year, when it was unveiled that it would target the construction of (at least) 250 commercial vessels that would be deployed “at any given time”.

The move was described as “tremendous” by some, given that the US has been largely falling behind in shipbuilding, with China, South Korea, and Japan holding the first three spots in this sector for years now. To compare, there are just 80 US-flagged vessels engaged in international commerce, and over 5,500 China-flagged units sailing the seas.

Moreover, as part of the strategy to ramp up the pressure on China, following a Section 301 investigation, the United States government said that it would introduce tariffs on Chinese-built ships calling at American ports. Although the tariffs were initially set to be as high as over $1 million per vessel, they were diluted in April this year to $18 per net ton to $120 per container.

The relationship between the US and South Korea, however, has not seen many tilts of the geopolitical seesaw, if any. Against the backdrop of the American government’s plan to breathe new life into its vessel construction capacity, one South Korean company had emerged as a potential contender to be the one to make what would be “the first US-flagged and US-built” unit.

Specifically, per Bloomberg, shipbuilding titan Hanwha Ocean is pursuing plans to build a liquefied natural gas (LNG) carrier (potentially more)—a ‘key’ segment for the United States maritime transportation industry that faces one big hurdle: the inability to construct such units on domestic terrain. On top of that, the majority of these vessels in the world are built in South Korea and Japan, with some in China.

In this sense, the deal between the American and South Korean side—both HD Hyundai and Hanhwa Ocean—is seen as a ‘dropped anchor at the right moment.’

It is worth noting that Russia recently made a similar pledge. Namely, in mid-May 2025, Russia revealed it would allocate over $6 billion to revamp its own maritime industry, construct hundreds of new ‘civilian’ ships by 2050, and increase its maritime workforce.