Trump Administration National Security Advisor Also Says "We Must Cooperate with South Korea's Joseon"... Growing Expectations for Ship Specialization

The US Navy logistics support ship "Wally Shira," which entered Hanwha Ocean Geoje Plant for ship maintenance, is approaching the quay. Photo by Hanwha Ocean

As the second term of the Donald Trump administration approaches, expectations for a U.S.-driven boom in the Korean shipbuilding industry are gaining momentum. Following President-elect Trump’s specific mention of cooperation with the Korean shipbuilding sector, Mike Waltz, a member of the House of Representatives appointed as the National Security Advisor at the White House under the Trump administration, has repeatedly expressed the view that cooperation with allies such as Korea is essential to maintaining naval power. Hanwha Ocean recently secured another contract for U.S. Navy ship repair work.

According to foreign media on the 12th (local time), Waltz stated in a late last month discussion at the think tank Atlantic Council, "The expertise in shipbuilding and the capability to build on a large scale outside of China lie with Korea and Japan," adding, "We have no choice but to ensure they cooperate with us in a meaningful way." He argued that naval power is crucial for the U.S. to win the strategic competition with China, and especially to secure shipbuilding and repair capabilities, cooperation with allies such as Korea, Japan, and India is necessary.

Earlier, President-elect Trump also said in a call with President Yoon Suk-yeol shortly after his election, "I am well aware of Korea’s world-class warship and shipbuilding capabilities," and added, "It is necessary to closely cooperate with Korea not only in ship exports but also in maintenance, repair, and servicing." This is seen as a clear indication of the Trump administration’s policy to exclude China from strategic industries.

Hanwha Ocean’s recent contract for the regular maintenance of the USNS YUKON, a replenishment ship assigned to the U.S. Navy’s 7th Fleet, is also noteworthy. This follows their August contract for the MRO (Maintenance, Repair, and Operations) project of the U.S. Navy’s logistics support ship Wally Schirra, marking an additional contract win within three months. The USNS YUKON, commissioned in March 1994, is scheduled for repairs to be completed by April next year and delivered to the U.S. Navy. The global naval ship MRO market size this year is estimated at $57.76 billion (approximately 77 trillion KRW), with the U.S. ship MRO market accounting for about 20 trillion KRW.

The Trump administration’s traditional energy-focused policies are also positive for the domestic shipbuilding industry. This is because it could lead to an increase in the construction of energy carriers such as LNG (liquefied natural gas), a strength of Korean companies. President-elect Trump is expected to approve the construction of LNG export facilities soon after taking office. According to a recent report by Samjong KPMG, "Due to the Trump administration’s fossil fuel-centered policies, demand for LNG and LPG (liquefied petroleum gas) may increase, creating a favorable environment for the Korean shipbuilding industry, which has strengths in building energy carriers."