HD Korea Shipbuilding & Offshore "Full-scale Participation in US MRO Business Starting Next Year"

"This Year, No Dock Availability...
Request for Government Cooperation on US Regulations"

HD Hyundai Heavy Industries has expressed its intention to actively enter the U.S. ship maintenance, repair, and overhaul (MRO) business starting next year.

On the 20th, Kim Sung-jun, CEO of HD Hyundai Heavy Industries, met with reporters at a shipbuilding industry meeting held at Lotte Hotel in Jung-gu, Seoul, and said, "This year, we adjusted our pace due to limited dock availability, but from next year, we plan to actively participate in the U.S. MRO market," adding, "We have already built significant achievements in ship exports and overseas MRO business."

Currently, among domestic shipbuilders, Hanwha Ocean is the only company that has succeeded in securing U.S. ship MRO contracts. Hanwha Ocean signed a Maintenance Service and Repair Agreement (MSRA) with the U.S. Navy in July, followed by winning the MRO contract for the military support ship 'USNS Willi Shiraho' in August. This month, it also secured a regular repair contract for the replenishment ship 'USNS Yukon.'

Kim Sung-jun, Vice Chairman and CEO of HD Hyundai Heavy Industries. Provided by HD Hyundai

At the meeting, Minister Ahn Deok-geun of the Ministry of Trade, Industry and Energy and shipbuilding company representatives reviewed the potential impact of the new U.S. administration on the Korean shipbuilding industry and discussed response measures. CEO Kim stated, "We have requested the government to pursue the conclusion of a Reciprocal Defense Procurement Agreement (RDP) with the U.S. and to ease the International Traffic in Arms Regulations (ITAR)."

The U.S. Department of Defense currently has RDP agreements with 28 countries to reduce trade barriers and improve access to defense industry products, but South Korea is not yet included among the agreement countries. The ITAR regulations also act as obstacles for Korean companies entering the U.S. defense market. These regulations block foreign access to defense-related items, although some countries such as the European Union (EU) and Japan have been granted exceptions.

Minister Ahn said at the meeting, "We will work closely with the new U.S. administration to alleviate uncertainties and actively support the continued maintenance and development of a mutually complementary cooperative relationship as a semiconductor alliance between the two countries."

Minister Ahn Deok-geun of the Ministry of Trade, Industry and Energy is speaking at a meeting with the shipbuilding industry in preparation for the new U.S. administration, held on the 20th at Lotte Hotel in Jung-gu, Seoul. Key company executives, including Yoo Sang-cheol, CEO of HJ Heavy Industries, Choi Sung-an, CEO of Samsung Heavy Industries, and Kim Hee-chul, CEO of Hanwha Ocean, attended the meeting. Photo by Jo Yong-jun