[Heavy & Chemical ON] Trump: "Cooperation with South Korea on Warship Construction"... Rising Expectations for Korean Shipbuilding

Trump Repeatedly Highlights Cooperation with South Korea
U.S. Department of Defense and Navy Issue First RFIs to Korean Shipbuilders
Industry Stresses "Legal Frameworks Must Come First"

U.S. President Donald Trump has specifically mentioned South Korea as a candidate for shipbuilding cooperation to strengthen U.S. naval power, raising expectations in the domestic shipbuilding industry. President Trump's explicit reference to South Korea among other nations is interpreted to mean that he views local shipbuilders—recognized for their world-class naval vessel construction capability and competitive delivery timelines—as practical partners for the U.S. Navy's rebuilding efforts. This suggests that the U.S. is not only seeking to expand domestic shipyards but is also open to leveraging the technology and production facilities of allied companies or even directly procuring certain vessels from overseas.

U.S. President Donald Trump. The Asia Business Daily DB

On July 15 (local time), President Trump addressed the shortage of military vessel supply at the Defense Innovation Summit held at the U.S. Army War College in Pennsylvania, stating, “We will probably look at companies from South Korea and other regions.” He continued, “They are working with us in shipbuilding, and we will also purchase some ships made outside the region.”

As of July 19, according to industry sources, the U.S. is accelerating its efforts to foster its shipbuilding sector. At the same Defense Innovation Summit in Pennsylvania that day, an investment plan worth about 10 billion dollars (approximately 13.8 trillion won) was unveiled, encompassing shipbuilding, artificial intelligence (AI), robotics, drones, and more. For the Philadelphia shipbuilding sector, this includes a 2.5 billion dollar long-term contract to support submarine construction, a 1.5 billion dollar ship order to Hanwha Philippines Shipyard, and workforce development and supply chain support investments from JPMorgan Chase. New investments from American defense firms in the shipbuilding sector, along with Hanwha-linked ship projects, have been announced, strengthening the likelihood that Korea-U.S. shipbuilding cooperation will progress from policy discussions to actual business endeavors.

Just a month after being reported to have asked President Lee Jae-myung at the recent Group of Seven (G7) summit whether ten U.S. warships could be quickly built, President Trump has once again publicly mentioned the Korean shipbuilding industry. The President’s repeated statements, combined with Requests for Information (RFI) from the U.S. Department of Defense and Navy, have led industry insiders to analyze that the U.S. is now considering cooperation with Korea for naval shipbuilding as a genuine procurement option, rather than merely a diplomatic agenda item.

Recently, the U.S. Department of Defense and Navy sent Requests for Information (RFIs) on combat vessels to HD Hyundai Heavy Industries and Hanwha Ocean, and on medium-sized supply vessels to HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries. This marks the first time that, following Korea-U.S. shipbuilding discussions, the U.S. has formally assessed the design and construction capabilities of domestic shipbuilders via RFI. The shipbuilding industry emphasizes that with both the RFI issuance and President Trump’s remarks, there is growing momentum around tangible cooperation, as the U.S. actively evaluates Korean capabilities.

President Lee Jae-myung and U.S. President Donald Trump are talking at the official welcome dinner hosted by Turkish President Recep Tayyip Erdoğan and his spouse at the Presidential Palace in Ankara, Turkey, on the 7th (local time). Joint coverage courtesy of Yonhap News Agency

An RFI is a procedure wherein a government gathers market information such as pricing, delivery conditions, and production capabilities prior to project initiation. Korean shipbuilders reportedly submitted details to the U.S., including past construction records, design workforce, and annual production capacity.

Efforts by Korean shipbuilders to penetrate the U.S. market are also accelerating. Hanwha has acquired a Philadelphia shipyard and is pursuing a license for warship construction, while HD Hyundai and Samsung Heavy Industries have each established partnership frameworks with local U.S. shipbuilders. With the U.S. government ramping up investment in domestic shipyards and supply chains, expectations are growing that Hanwha’s American production base will become even more important.

However, President Trump’s remarks do not immediately translate into orders for U.S. Navy vessels from Korean shipbuilders. The U.S. typically restricts the overseas construction of naval vessels and core components through the “Bunce-Tollefson Amendment,” so importing warships built in Korea would require legislative revision or congressional approval for exceptions. Industry analysis suggests that cooperation will likely start with non-combat support or supply ships—where legal barriers are less stringent—and then could expand to warships.

An industry insider noted, “Although an executive order is a possibility, building domestic consensus and adjusting legal frameworks must take priority.” The insider added, “Even if genuine cooperation materializes, it is more likely to begin with non-combat support or supply ships, rather than warships.”

Hanwha PHIL Shipyard panorama. Photo by The Asia Business Daily DB

While the U.S. ultimately seeks to expand domestic production, there are limitations to overcome. Even with new shipyards, rapidly establishing a pool of skilled workers and a robust supply chain is challenging, and the high production costs in the U.S. are also seen as a burden. In reality, the U.S. is working to expand its production base by providing financial support, developing skilled personnel, and broadening supply chains around the Philadelphia shipyard.

An industry official commented, “Shipbuilding is not an industry where constructing facilities alone is sufficient. You need equipment, partner companies, and skilled workers. Considering costs and delivery schedules, building ships in Korea remains a practical alternative.”

This content was produced with the assistance of AI translation services.