US and South Korea Enhance Naval Cooperation Amid Global Shipbuilding Expansion

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The United States and South Korea are strengthening their naval collaboration to address challenges in the global shipbuilding industry and enhance regional security. This partnership focuses on shipbuilding, maintenance, and repair services, aiming to bolster the capabilities of both nations' naval forces.

In April 2025, Hyundai Heavy Industries (HHI) and Huntington Ingalls Industries (HII) signed a memorandum of understanding (MOU) to collaborate on shipbuilding efforts. This agreement encompasses both military and commercial vessel production, leveraging the expertise of both companies to accelerate the delivery of quality ships. HHI, operating the world's largest shipyard in Ulsan, South Korea, has a significant presence in the global shipbuilding market. The partnership is expected to enhance the shipbuilding capacities and capabilities of both nations, contributing to the strengthening of bilateral security cooperation.

Additionally, South Korean shipbuilder Hanwha Ocean has been actively involved in maintenance, repair, and overhaul (MRO) services for U.S. Navy vessels. In March 2025, Hanwha Ocean completed repairs on the USNS Wally Schirra, marking the first time a South Korean shipyard has conducted such work for the U.S. Navy. This collaboration exemplifies the growing recognition of the need to harness allied shipbuilding expertise to maintain naval readiness. Hanwha Ocean has also acquired a U.S. shipyard in Philadelphia, aiming to expand its presence in the U.S. market and secure more MRO contracts. The company plans to modernize its U.S. facilities and train workers to enhance efficiency and competitiveness in the shipbuilding sector.

Furthermore, in May 2025, South Korea and the United States discussed expanding their cooperation in naval shipbuilding and maintenance to include military aircraft. During the Korea-U.S. Integrated Defense Dialogue (KIDD) in Washington, both nations agreed to explore MRO cooperation for aircraft, building upon their existing collaboration in shipbuilding. This initiative reflects a mutual commitment to strengthening the alliance and achieving shared security goals in the Indo-Pacific region.

These developments underscore the deepening defense industrial partnership between the U.S. and South Korea. By leveraging each other's strengths in shipbuilding and maintenance, both countries aim to enhance their naval capabilities and address challenges posed by global competitors. The collaboration is expected to contribute to regional stability and the security of international sea lanes.

Sources

  • Bloomberg Business

  • Reuters

  • Reuters

  • Lloyd's List

  • Reuters

  • CNN Business

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