Why Trump is courting South Korea for naval shipbuilding efforts


Trump hinted early this month at potentially outsourcing the construction of US Navy ships to allies’ shipyards. — The Korea Herald

SEOUL: Anticipation for South Korean shipbuilders continues to build up as the second Trump administration is actively seeking ways to revamp its naval fleet to countermeasure China’s overwhelmingly dominant shipbuilding sector and formidable maritime forces.

After the US president mentioned South Korea’s cooperation in the maintenance, repair and overhaul, or MRO, business in a call with now suspended president Yoon Suk Yeol following his election victory in November, Trump then hinted early this month at potentially outsourcing the construction of US Navy ships to allies’ shipyards.

This is as the United States lacks shipbuilding capacity, with the American shipbuilding industry finding itself in a huge hole.

A leaked slide from a 2023 Office of Navy Intelligence briefing showed that China’s overall shipbuilding capacity is 232 times greater than that of the United States.

According to the US Navy’s 2025 shipbuilding plan and the Institute for National Defense and Security Research, the US Navy operated 295 battle force ships whereas the Chinese People’s Liberation Army Navy had 360 ships as of December last year.

Clarksons Research, a United Kingdom-based maritime shipping and shipbuilding information provider, released that China accounted for 53% of the global shipyard output by market share last year, followed by South Korea with a 28% share.

Last year’s US$100mil acquisition of the Philly Shipyard by Hanwha Group, South Korea’s defence-to-energy conglomerate, and Hanwha securing MRO contracts from the US Navy have opened up possibilities for collaboration.

“Hanwha’s Philly shipyard acquisition and first MRO contract with the US Navy can be seen as pilot projects,” said Bence Nemeth, an associate professor at King’s College London, in an article posted on the Korea Institute for Maritime Strategy’s website.

“If they are successful, more opportunities will arise for South Korean companies. If Hanwha can demonstrate that it can build ships in Philadelphia more efficiently compared to other US shipyards, it will already be a win for South Korea and the US Navy.”

Henry Haggard, senior adviser at the American Chamber of Commerce in South Korea, highlighted that the United States should take a far more sweeping approach and modify the Jones Act to allow the production of needed vessels outside the United States. — The Korea Herald/ANN

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