Seoul: South Korea's leading shipbuilders are shifting their focus towards the U.S. naval market following a recent setback in securing Canada's submarine replacement program. This strategic pivot comes amid increased interest from Washington in South Korea's naval shipbuilding capabilities, potentially providing momentum to Seoul's Make American Shipbuilding Great Again (MASGA) initiative.
According to Yonhap News Agency, U.S. President Donald Trump has been emphasizing the need to revitalize America's shipbuilding industry by collaborating with trusted allies. In line with this, the Pentagon and the U.S. Navy have sent requests for information (RFIs) to South Korean companies HD Hyundai Heavy Industries Co. and Hanwha Ocean Co. to evaluate their ability to design and construct destroyers. Samsung Heavy Industries Co. has also received an RFI for medium-sized fleet replenishment ships. This marks the first such inquiry following last year's bilateral agreement allocating $150 billion for shipbuilding cooperation under the MASGA proposal, part of a broader $350 billion South Korean investment package in the U.S.
Industry sources indicate that although an RFI is merely a preliminary survey, its issuance signifies a formal review of Korean shipbuilders' capacity, signaling a potential partnership. This development comes on the heels of South Korea's unsuccessful bid for Canada's submarine replacement program, which was awarded to Germany's TKMS. Despite competitive pricing and advanced technology, the South Korean bid was overlooked, possibly due to Canada's strategic alignment with NATO.
In response, South Korean shipbuilders are now directing their attention to the U.S., exploring avenues to expand its naval production capacity amid growing strategic competition with China. During the recent Group of Seven (G7) summit, President Trump inquired if South Korean shipbuilders could meet the U.S. Navy's needs for ten vessels. President Lee Jae Myung affirmed their capabilities and commitment to meeting U.S. requirements.
Further discussions took place during President Lee's visit to Turkey for the NATO summit, where he and President Trump agreed to continue consultations on military shipbuilding cooperation. Among the South Korean naval vessels drawing attention is the 3,600-ton Ulsan-class Batch-III frigate. Designed by HD Hyundai Heavy Industries, this vessel exemplifies South Korea's advanced shipbuilding capabilities.
South Korea's major shipbuilders each offer unique advantages. HD Hyundai is renowned for its expertise in front-line surface vessels and has obtained the U.S. Navy's Master Ship Repair Agreement certification. Hanwha Ocean, with its U.S. manufacturing base at Philadelphia Shipyard, may benefit from domestic-build requirements. Samsung Heavy Industries, known for its LNG carriers, is well-positioned for logistics ship orders.
Despite optimism, challenges remain due to U.S. regulatory requirements, such as the Byrnes-Tollefson Amendment, which mandates local construction of major Navy vessels. Industry experts foresee Korean shipbuilders complementing U.S. production through technology transfers, joint ventures, and construction at U.S. facilities.
The extent of this potential collaboration will depend on the Trump administration's implementation of the MASGA initiative and congressional support for increased participation by allied shipbuilders.