South Korean shipbuilding industry is emerging as a key player in US president Donald Trump’s plan to revive America’s fleet. The president has secured from South Korea investments to modernize and expand the capacity of American shipbuilding industries, including through investments in U.S. shipyards and America’s workforce.
US president Donald Trump wants more ships made in America and he’s going to need foreign help.
Key to this effort, which the administration sees as a national security and economic imperative, is South Korean shipbuilding giants.
Trump completed the final stop of his historic Indo-Pacific trip, securing billions in landmark deals while visiting the Republic of Korea.
HD Hyundai and Cerberus Capital Management will partner on a $5bn investment program for modernizing American shipyards, strengthening supply chains, and applying new technologies like autonomous navigation, digitalization, and automation.
Samsung Heavy Industries and Vigor Marine Group will cooperate on naval vessel maintenance, repair, and overhaul (MRO), shipyard automation, and new construction of U.S.-flagged vessels.
Meanwhile, Hanwha Ocean announced a $5bn infrastructure plan to strengthen Pennsylvania’s Philly Shipyard workforce and increase its current production capacity by more than ten-fold.
“Bringing back Trillions of Dollars to USA! A great trip. Dealing with very smart, talented, and wonderful Leaders. Tomorrow, President Xi of China. It will be a great meeting for both!!!,” Trump wrote on Oct. 29 on his Truth Social platform.
US has reached a broad agreement on investment and shipbuilding as attention shifts to US-China meeting.
It’s the linchpin of a broader strategy to counter China’s dominance in the field, which gives the People’s Republic a significant military and economic advantage over the U.S., whose shipbuilding capabilities are anemic in comparison.
In August, South Korea announced its plan to enhance its shipbuilding ties with the U.S. The trade deal includes a provision that South Korea will invest $350bn in the United States, of which $150bn will be committed to assisting South Korea companies in entering the American shipbuilding industry, South Korea’s president Lee Jae Myung said on social media, as reported by the government.
The Korea-U.S. shipbuilding cooperation will span the entire shipbuilding ecosystem including construction, MRO (maintenance, repair and operation), and equipment.
