South Korea courts US shipbuilding partnership amid push to crack down on Chinese tonnage
South Korea is pitching its shipbuilders as vital partners in the US strategy to reshore production and counter China’s shipbuilding dominance
Seoul dangled preferential delivery of naval, tanker and icebreaker orders to align with the Trump administration’s emerging shipbuilding policy
SOUTH Korea is actively positioning itself as a key strategic partner with the US in shipbuilding, with the Trump administration poised to counter China’s dominance in this sector and revive capacities domestically.
During a recent visit to Washington, South Korean Minister of Trade Ahn Duk-geun proposed that its shipbuilders could prioritise production and delivery of newbuildings — including naval vessels, tankers and icebreakers — if the US places orders.
Ahn met with Commerce Secretary Howard Rutnik, White House National Energy Council Chairperson and Secretary of the Interior Doug Burgum and US Trade Representative (USTR) Jamison Grier. Discussions focused on cooperation in shipbuilding, energy and trade.
The visit came as the US is finalising plans to crack down on Chinese-built ships and seek allied support to revitalise its domestic shipbuilding industry.
This initiative gained further momentum this week when US President Donald Trump, in an address to Congress, unveiled plans to establish a White House Office of Shipbuilding and introduce new tax incentives for the sector.
His draft executive order, seen by Lloyd’s List, appears to expand the scope of port fees on Chinese ships beyond the USTR’s proposal and could be implemented sooner.
According to SK Securities analyst Han Seung-han, these tax incentives could encourage investments from South Korean shipbuilders, particularly HD Hyundai and Hanwha Ocean.
“With Hanwha Ocean and Hanwha Systems completing their acquisition of Philly Shipyard in Philadelphia last year, it is increasingly likely that HD Hyundai will either acquire a US shipyard or make equity investments,” Han noted.
Ahead of Ahn’s visit, the ministry stated: “Through face-to-face meetings with US government officials, Minister Ahn will actively request tariff exemptions on an item-by-item and reciprocal basis, while discussing plans to enhance cooperation in shipbuilding, energy and other sectors.”
This move aligns with South Korea’s broader strategy to strengthen trade ties with the US through shipbuilding cooperation, as Washington seeks to revitalise its domestic shipbuilding industry.
The Ministry of Trade, Industry and Energy has been approached for comment.
Earlier this year, the South Korean government formed a cross-government taskforce to promote shipbuilding collaboration ahead of Trump’s second presidential term. As Trump’s plan to revive US shipbuilding takes shape, South Korea is expected to expand its role in this effort.
