South Korea is collaborating with the government and private sector to strengthen its ties with the U.S. in the shipbuilding industry. Major companies, such as HD Hyundai Heavy Industries, are establishing bases in the U.S., and the government is supporting efforts to train individuals. They are taking advantage of the Trump administration’s push to revive the shipbuilding industry to gain a share of the market for building and repairing military ships. South Korea aims to catch up with China, which holds over half of the global shipbuilding market share, by leveraging its alliance with the US.
In late June, HD Hyundai emphasized its partnership with Edison Chouest Offshore (ECO), a U.S. shipbuilding company. The two companies plan to build LNG-fueled container ships together by 2028. ECO has five commercial shipbuilding bases in the US and specializes in offshore support vessels (OSVs); however, orders have been sluggish in recent years.
ECO approached HD Hyundai for a partnership because HD Hyundai saw it as an opportunity to expand its business in the US market. In July 2024, HD Hyundai became the first South Korean company to sign a ship repair agreement with the U.S. Navy, marking a significant step toward entering the U.S. market on a large scale. The agreement grants HD Hyundai eligibility to participate in the MRO (maintenance, repair, and overhaul) business, estimated to be worth 20 trillion won (approximately US$ 14.4 billion) annually. In April 2025, HD Hyundai announced a collaboration with Huntington Ingalls Industries, the largest defense shipbuilding company in the U.S., to develop next-generation ships. In collaboration with U.S. defense technology startups, HD Hyundai plans to complete an unmanned maritime reconnaissance vessel by 2026. With future combat applications in mind, HD Hyundai aims to become a “game-changer in future naval warfare.”
Hanwha Ocean, South Korea’s second-largest shipbuilder, is intensifying its shift toward the U.S. market. In March, Hanwha Ocean completed the first regular maintenance of the U.S. Navy’s 40,000-ton military support vessel, the Wally Schiller. Hanwha aims to secure 5 to 6 U.S. Navy vessel maintenance, repair, and overhaul (MRO) projects by 2025.
In line with HD Hyundai and Hanwha’s focus on U.S. operations, U.S. naval and shipbuilding officials have been visiting South Korean shipbuilding facilities since spring 2024. In February, U.S. Senator Mark Kelly visited Hanwha’s Philadelphia shipyard, acquired by Hanwha in December 2024. Kelly stated, “Cooperation with South Korea is essential to counter China’s rise.”
Source: The Nikkei
PSR Analysis: South Korea’s shift toward the U.S. is influenced by China’s presence. China accounts for 70% of shipbuilding orders, so South Korea (with 17%) needs to collaborate with other countries to maintain its industry. South Korea hopes that countries will place orders to South Korea for reasons of international security. The U.S. is also sending signals to Japan, but its response has been slow. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
