U.S. Navy, Congress reaffirm need for Korean cooperation to revive American shipbuilding

May 01, 2025, 09:23 am

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Acting President and Prime Minister Han Duck-soo meets with visiting U.S. Secretary of the Navy John P. Phelan at the Government Complex Seoul on April 30. / Source: Prime Minister’s Office

The U.S. government and Congress reaffirmed their position that cooperation with South Korea is essential to revitalizing America’s shipbuilding industry.

 

During a meeting with Acting President and Prime Minister Han Duck-soo in Seoul on April 30, U.S. Secretary of the Navy John P. Phelan praised the expertise of HD Hyundai Heavy Industries and Hanwha Ocean, stating that the Navy is prioritizing shipbuilding and encouraging further investment in U.S. shipyards. According to a U.S. Navy press release, Phelan acknowledged the growing role of Korean firms, highlighting Hanwha Ocean’s two U.S. Navy maintenance and operations contracts awarded in August and November last year.

 

Separately, U.S. Senator Todd Young (R-IN) proposed at a Hudson Institute forum on the rebuilding of America's maritime industrial base that, similar to the CHIPS Act, subsidies should be used to encourage Korean and Japanese shipbuilders to invest in the U.S.

 

The U.S. Navy noted that Acting President Han outlined key strategic areas for enhanced Korea-U.S. defense cooperation—particularly advanced technologies and shipbuilding—under the mutual defense treaty, stressing these areas as crucial for strengthening the alliance’s readiness on the Korean Peninsula.

 

Han emphasized that shipbuilding cooperation represents a mutually beneficial sector where “Korea is the optimal partner to support the revival of the U.S. shipbuilding industry,” according to the Prime Minister’s Office.

 

Secretary Phelan responded by praising the existing maintenance, repair, and overhaul (MRO) partnerships with Korean firms, saying they have “greatly contributed to the readiness of the U.S. Navy.” He also pledged full support for expanding shipbuilding cooperation with Korean companies.

 

Following the meeting, Phelan visited two of Korea’s top defense shipbuilders—HD Hyundai Heavy Industries’ Ulsan headquarters and Hanwha Ocean’s Geoje shipyard.

 

At Hyundai’s Ulsan facility, he toured the next-generation Aegis destroyer construction site and discussed naval shipbuilding and MRO collaboration with HD Hyundai Vice Chairman Jung Ki-sun. Jung directly briefed Phelan on the company’s capabilities and defense ship programs.

 

Phelan then met with Hanwha Group Vice Chairman Kim Dong-kwan at Hanwha Ocean to explore potential cooperation in naval shipbuilding. He also received a briefing on the Jangbogo-III Batch-II submarine, currently under construction.

 

He reportedly expressed keen interest in the Philadelphia Shipyard, recently acquired by Hanwha Group in the U.S.

#U.S. Navy #shipbuilding 
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