US SECRETARY of the Navy John Phelan visited HD Hyundai Heavy Industries’ Ulsan shipyard and Hanwha Ocean’s Geoje shipyard during a visit to South Korea to discuss US-South Korea shipbuilding co-operation. 

Phelan met with HD Hyundai executive vice-chairman Chung Ki-sun and Hanwha Group vice-chairman Kim Dong-kwan, and visited key facilities at each shipyard.

During the tour, Phelan focused on the shipbuilders’ naval shipbuilding and maintenance, repair and overhaul (MRO) capabilities.

At HD HHI’s Ulsan shipyard, he went on board the Aegis destroyer Jeongjo the Great, which was delivered to the Republic of Korea Navy in November 2024, and looked around the destroyer Dasan Jeong Yak-yong.

Hyundai’s Chung said: “With our advanced technologies and shipbuilding capabilities, we will support the country’s effort to revitalise the shipbuilding industry.”

At Hanwha’s Geoje shipyard, Phelan inspected USNS Yukon, a US 7th Fleet replenishment oiler undergoing MRO.

“Hanwha Ocean has established a construction system capable of responding rapidly to the strategic needs of the US Navy under any circumstances,” Hanwha’s Kim said.

Phelan said: “Leveraging the expertise of these highly capable shipyards enables timely maintenance and repairs for our vessels to operate at peak performance.”

After winning two MRO contracts from the US Navy last year, Hanwha Ocean is targeting five to six new contracts this year. HD HHI aims to win MRO contracts for two to three more US ships this year.

Shipbuilders are not only targeting the MRO market, but are also building naval vessels.

Earlier this month, HD Hyundai signed a Memorandum of Understanding with Huntington Ingalls, the largest US defence shipyard, with the goal to improve shipbuilding productivity and cooperate on advanced shipbuilding technologies.

In December 2024, Hanwha Ocean and Hanwha Systems jointly acquired Hanwha Philly Shipyard in Philadelphia, marking the first entry of a South Korean company into the US shipbuilding industry.

Hanwha also acquired a 9.9% stake in Austal, an Australian shipbuilder with facilities in Mobile, Alabama and San Diego, California, and is seeking an additional 10% stake to bring its total ownership to 19.9%.