Visit to South Korea Being Considered for Late Next Month After Freedom Shield Ends
Cooperation with K-Shipbuilding Industry Likely to Be Discussed
U.S. Secretary of Defense Pete Hegseth is reportedly considering a visit to South Korea at the end of March. If he visits, it is expected that he will discuss cooperation on warship construction and maintenance, repair, and overhaul (MRO) between the U.S. Navy and the domestic shipbuilding industry, as well as issues related to defense cost-sharing.
According to government and defense industry sources on the 26th, Secretary Hegseth's side is reportedly negotiating a visit to South Korea around the end of next month, after the conclusion of the joint U.S.-South Korea exercise "Freedom Shield (FS)." If realized, he would be the first minister-level official from the second Trump administration to visit South Korea.
Secretary Hegseth's primary interest is expected to be the domestic shipbuilding industry. This is because the second Trump administration emphasizes naval reconstruction to secure an advantage in the hegemonic competition with China. According to the "Analysis of the U.S. Navy's 2025 Shipbuilding Plan" prepared by the Congressional Budget Office (CBO) in January this year, the U.S. Navy plans to expand its current 295 combat ships to 364 by 2054.
The problem is that the U.S. shipbuilding capability is inferior compared to China and others. According to Clarkson Research, as of last year, China's shipbuilding industry accounted for more than 70% of total orders. In the case of the U.S., the share is less than 1%. Meanwhile, South Korea, along with Japan, is classified as one of the few countries with competitiveness in shipbuilding against China. Its order share is about 17%, surpassing other regions such as Japan (13%).
In line with this trend, the Korean shipbuilding industry is continuing strategic moves with cooperation with the U.S. in mind. HD Hyundai Heavy Industries is considering entering the MRO business for U.S. vessels and local investment, while Hanwha Ocean acquired the Philadelphia-based Philly Shipyard in the U.S. last December together with Hanwha Systems.
Therefore, if this visit is realized, it is highly likely that Secretary Hegseth will discuss cooperation plans with domestic shipbuilders such as HD Hyundai Heavy Industries and Hanwha Ocean. A government official said in this regard, "We are currently reviewing the possibility of the visit, but nothing has been concretely decided yet."
Defense cost-sharing is also expected to be a major topic of discussion. During his first term, U.S. President Donald Trump demanded that South Korea increase its defense cost-sharing by more than five times. During the last presidential election, he referred to South Korea as a "money machine" and stated that South Korea would bear $10 billion (approximately 14.3 trillion won) annually in defense costs.
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