South Korea needs 'win-win' strategy for shipbuilding partnership with US

IANS May 19, 2025 372 views

South Korea is strategically positioning itself to leverage significant US shipbuilding opportunities over the next decade. The Federation of Korean Industries has recommended a detailed collaboration approach to maximize business potential. US projected vessel orders range from commercial ships to naval vessels, presenting substantial market potential. Korean shipbuilders are advised to develop sector-specific proposals and maintain close governmental consultations to ensure successful partnership.

"Korean shipbuilders should engage in close consultations with the U.S. government" - Professor Ryu Min-chul, Korea Maritime and Ocean University
Seoul, May 19: South Korea should establish a detailed "win-win" strategy to seize business opportunities amid the United States' push to revitalise its shipbuilding industry, a local business lobby said on Monday.

Key Points

1

US expected to order 403-448 vessels by 2037

2

Korean firms seek mutually beneficial shipbuilding synergies

3

SHIPS for America Act mandates domestic vessel production

4

Navy plans 364 new ship procurement

The recommendation follows a recent meeting between U.S. Trade Representative Jamieson Greer and top executives from major Korean shipbuilders HD Hyundai and Hanwha Ocean Co. to discuss cooperation in shipbuilding, reports Yonhap news agency.

"The Korean government and shipbuilding companies need to present sector-specific proposals aligned with the U.S. government's plans to build new vessels, in order to create mutually beneficial synergies," the Federation of Korean Industries (FKI) said, citing a new report.

According to the report, the U.S. is expected to place orders for between 403 and 448 vessels by 2037, including commercial ships, liquefied natural gas (LNG) carriers and naval ships.

The projected orders include 100 commercial vessels, 42 to 65 LNG carriers, 10 icebreakers, 129 combat ships and 67 vessels for the National Defense Reserve Fleet.

The number of U.S. vessel orders is likely to increase further as the country aims to expand its commercial fleet to 250 ships under the SHIPS for America Act, proposed in April. The act also mandates that by 2047, 15 percent of outbound U.S. LNG shipments must be transported on domestically built vessels.

Additionally, the U.S. Navy recently announced plans to procure 364 new ships over the next 30 years. In January, U.S. President Donald Trump pledged that the U.S. would order 40 large icebreakers.

"Korean shipbuilders should engage in close consultations with the U.S. government when participating in local shipbuilding projects and ensure consistent support from U.S. authorities," Professor Ryu Min-chul of Korea Maritime and Ocean University said in the report titled "Analysis of the U.S. Shipbuilding Industry and Implications for Korea–U.S. Cooperation."

Ryu also warned that Korean companies must be mindful of potential business risks stemming from possible changes in U.S. shipbuilding policies.

—IANS

Reader Comments

R
Rahul K.
Interesting development! South Korea has world-class shipbuilding expertise while US wants to revive its industry. A strategic partnership could be beneficial for both, but Korea must protect its technological edge. Hope our Indian shipyards are watching this - we could learn from such collaborations.
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Priya M.
The US shipbuilding revival plan seems ambitious! 364 new ships in 30 years is massive. Korean companies are smart to position themselves early, but they should be cautious about technology transfers. Remember how China learned shipbuilding from others and then became a competitor? 🤔
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Amit S.
This shows how global trade dynamics are changing. With US focusing on domestic manufacturing through acts like SHIPS for America, countries need to adapt. India should take notes - we have long coastline and skilled workforce, but our shipbuilding industry needs policy push like this.
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Neha T.
The LNG carrier demand is particularly interesting given global energy shifts. South Korea dominates this segment with their advanced tech. Hope they don't give away too much in this partnership. Meanwhile, India should explore similar tech collaborations for our growing energy needs.
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Sanjay P.
While this Korea-US partnership makes business sense, I hope it doesn't affect regional balance in Asia. US military ship orders to Korean yards could have strategic implications. India should maintain strong defense shipbuilding capabilities independently - can't rely on others for national security.
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Meena R.
The professor's warning about policy changes is spot on! US priorities shift with administrations. Korean companies must build flexibility into any long-term agreements. Maybe they should also look at diversifying partnerships - India could be an alternative market with our 'Make in India' focus.

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Tags:
Shipbuilding South Korea United States HD Hyundai Hanwha Ocean Maritime Industry Trade Cooperation
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