SEOUL: South Korean President Lee Jae Myung is promoting a “Make America Shipbuilding Great Again” initiative during his inaugural official visit to the United States.
Lee held his first summit with US President Donald Trump on Monday before visiting a Hanwha Group shipyard to showcase investment commitments.
South Korea has pledged US$350 billion for US projects, with US$150 billion specifically allocated to revitalise the American shipbuilding sector.
Trump emphasised his desire to strengthen shipbuilding capabilities to compete with China, the global leader in both commercial and naval vessel construction.
The potential and challenges of this initiative will be highlighted during Lee’s tour of Hanwha’s Philly Shipyard in Philadelphia.
Hanwha plans to invest up to US$5 billion to increase production from under two vessels annually to twenty vessels.
“The K-shipbuilding industry, equipped with the world’s strongest capabilities, will bring about a renaissance of the U.S. shipbuilding industry and create a new historic turning point for mutual prosperity,“ Lee said.
South Korea’s industry ministry confirmed eleven non-binding agreements between US and South Korean companies across shipbuilding, nuclear energy, and aerospace sectors.
HD Hyundai partnered with Korea Development Bank and Cerberus Capital to establish a multibillion-dollar joint investment fund for maritime capabilities.
Samsung Heavy Industries agreed with Vigor Marine Group to collaborate on US Navy vessel maintenance and shipyard modernisation.
South Korea’s shipbuilding modernisation package helped secure an unwritten trade deal during July tariff negotiations.
US shipyards held the world’s highest production capacity during World War II but now account for just 0.04% of global market share.
“We’re going to go back into the shipbuilding business again,“ Trump declared during his Oval Office meeting with Lee.
Industry experts note significant challenges including outdated facilities and technician shortages in US shipyards.
Training local workers could require four to five years according to South Korean industry sources.
Hanwha is working to modernise facilities, train workers, and implement faster manufacturing processes.
The company plans to utilise idle docks near Philly Shipyard and incorporate automation to accelerate production.
Obtaining essential components like steel plates may hinder rapid progress in shipbuilding expansion.
Trump confirmed some US ships will continue to be built in South Korea while increasing domestic production.
South Korean officials indicated that US protectionist policies could limit full ship construction or module deliveries.
The 1920 Jones Act mandates domestic construction for ships moving goods between US ports.
The Byrnes-Tollefson Amendment prohibits foreign construction of US Navy vessels without presidential waiver.
Lee’s national security adviser Wi Sung-lac acknowledged these legal restrictions while seeking cooperation solutions.
“We’re conducting various studies to increase cooperation while taking into account various detours and institutional improvements,“ he stated. – Reuters