S. Korean shipyards anticipate greater U.S. biz opportunities after Trump's call for cooperation

By Chang Dong-woo

SEOUL, Nov. 14 (Yonhap) -- South Korean shipyards appear upbeat over potential opportunities to expand their business in America after U.S. President-elect Donald Trump's call for more bilateral cooperation in the sector.

In his phone conversation with South Korean President Yoon Suk Yeol following his election victory last week, Turmp said the U.S. seeks to work with South Korea in the shipbuilding industry, particularly in naval shipbuilding, exports, repairs and maintenance, according to the Seoul presidential office.

Mike Waltz, Floridian congressman and Trump's pick for White House national security adviser, has also noted the need to cooperate with the shipbuilding industries of South Korea, Japan and European allies.

Industry observers assess statements by Trump and Waltz reflect growing concerns that the U.S. could lose maritime dominance to China, which currently dominates global shipbuilding orders.

"While the U.S. is a military superpower, its naval strength has waned due to the decline of its once-thriving shipbuilding industry," an industry watcher said, adding, "This has prompted increasing calls within the U.S. political sphere to revitalize the country's shipbuilding sector."

China has emerged as a leader in global shipbuilding, accounting for a global market share of 50 percent in 2021 and 60 percent in 2023 in terms of order volume.

Industry watchers, in particular, anticipate immediate cooperation opportunities in the area of maintenance, repair and overhaul (MRO). Last year, the U.S. Department of Defense allocated around US$13.9 billion in its annual budget specifically for naval MRO services.

HD Hyundai Heavy Industries Co. and Hanwha Ocean Co. have ramped up efforts to enter the American naval MRO market by securing master ship repair agreements with the U.S. Naval Supply Systems Command this year.

In 2022, HD Hyundai Heavy Industries became the first Korean company to win an MRO contract from the Philippine Navy.

Last month, the company signed an agreement with Poland's Remontowa Shipbuilding for joint MRO operations.

Hanwha Ocean in August secured a contract to overhaul a 40,000-ton U.S. military logistics vessel and more recently won a deal to repair USNS Yukon, a 31,000-ton replenishment oiler, under the U.S. Navy's 7th Fleet.

U.S. Navy officials have also been making visits to South Korea's major shipyards, indicating a growing interest in collaboration.

In February, U.S. Secretary of the Navy Carlos Del Toro visited shipyards of HD Hyundai Heavy Industries and Hanwha Ocean. Last month, Adm. Stephen Koehler, commander of the U.S. Navy's Pacific Fleet, also visited South Korea to inspect Hanwha Ocean's ongoing maintenance work on the 40,000-ton logistics vessel, USNS Wally Schirra.

Kim Dae-sik, managing director of Hanwha Ocean's MRO business, emphasized the company's commitment in the field, stating, "Leveraging our world-class MRO technology, we are committed to timely deliveries that will enhance U.S. naval power and contribute to the U.S.-Korea alliance."

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