South Korea’s shipbuilders court US amid trade talks and defence realignment

South Korea’s major shipbuilders, HD Hyundai and Hanwha Ocean, are stepping up efforts to build strategic ties with the US, leveraging growing US interest in revitalising its domestic shipbuilding and port infrastructure sectors. The outreach coincided with a visit by US Trade Representative Jamieson Greer to Jeju Island for the APEC trade summit on May 16.

During meetings with Greer, HD Hyundai executive vice chairman Chung Kisun emphasised the group’s capabilities in naval and commercial shipbuilding and manufacturing port cranes – offering to stabilise US port equipment supply chains in light of ongoing tensions over Chinese-made “spy cranes”. Hanwha Ocean’s CEO Kim Hee-chul similarly underscored plans to transfer smart shipyard technologies to its Philly Shipyard and hinted at further US expansion.

Both shipbuilders are already registered participants in a US Navy auxiliary maintenance programme and highlighted collaboration with US firms like Huntington Ingalls. The diplomatic charm offensive comes as South Korea seeks a broader trade agreement with Washington and eyes industrial cooperation as a bargaining chip.

However, the talks face uncertainty amid South Korea’s pending June elections and speculation over US demands to offset troop stationing costs. A tentative trade deal target has been set for July.