South Korea and US to Expand Shipbuilding Cooperation Amid Rising US-China Competition

Strategic Insights -

South Korean Foreign Minister Cho Hyun, along with acting U.S. Ambassador to South Korea Joseph Yun, will visit HD Hyundai Heavy Industries Co.'s shipyard this week to explore ways to enhance bilateral cooperation in the shipbuilding sector. The visit is part of a broader initiative, "Make American Shipbuilding Great Again," which involves a US$150 billion investment by South Korea in the U.S. shipbuilding industry. This cooperation aims to counter China's growing shipbuilding influence and aligns with the Trump administration's push to revive America's shipbuilding capacity.

Key Takeaways:

  • The South Korean government plans to invest US$150 billion in the U.S. shipbuilding industry as part of its "Make American Shipbuilding Great Again" initiative.
  • The project includes constructing new shipyards in the U.S., nurturing shipbuilding personnel, and reestablishing related supply chains.
  • South Korea's investment package also includes a US$350 billion commitment to support U.S. industries in exchange for reduced tariff rates on South Korean goods.
  • The visit by Foreign Minister Cho and Ambassador Yun aims to explore ways to expand bilateral cooperation in the shipbuilding sector.
  • The initiative is expected to be on the agenda for the upcoming summit between President Lee Jae Myung and U.S. President Donald Trump.

Statistics:

  • US$150 billion: the amount of investment by South Korea in the U.S. shipbuilding industry.
  • US$350 billion: the total investment package pledged by South Korea to support U.S. industries.
  • 25% and 15%: the initial and reduced tariff rates on South Korean goods, respectively.
  • 300 kilometers: the distance between Seoul and the HD Hyundai Heavy Industries Co. shipyard in Ulsan.
  • Aug. 25: the scheduled date for the summit between President Lee Jae Myung and U.S. President Donald Trump.

Sources:

  • Yonhap News Agency, 12 August 2025
  • South Korean Ministry of Foreign Affairs, cited in Yonhap News Agency, 12 August 2025