Special Mission for Shipbuilding and Defense: "Host President Trump in October"

Possibility of Visiting Local Factories During APEC Summit
Potential Promotional Impact for Leading Korean Shipyards if Visit Occurs

As U.S. President Donald Trump is expected to visit South Korea this October, domestic shipbuilding companies are fiercely competing to host him. President Trump is scheduled to attend the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, North Gyeongsang Province. Given that he has previously reached out to domestic shipbuilders in an effort to revitalize the U.S. shipbuilding industry, there is growing speculation that he may also visit a local shipyard during his trip.

According to the Ministry of Foreign Affairs on June 9, the South Korean government sent invitations for the APEC summit to member countries last month. The 21 APEC members include South Korea, the United States, Japan, China, Russia, Taiwan, Canada, Malaysia, Indonesia, Vietnam, and Mexico, among others. Typically, the first round of APEC summit invitations is sent between May and July to inform participants of the event schedule, followed by a second round in the fall to provide details on specific agendas and topics.

President Trump's attendance has not yet been confirmed. However, an official stated, "We understand that the U.S. side is making plans, including hotel arrangements, on the assumption that President Trump will attend." HD Hyundai Heavy Industries and Hanwha Ocean believe that if President Trump visits, they could establish themselves as leading domestic shipyards and secure an effective promotional tool for overseas markets.

The problem is that it will be difficult for President Trump to visit both the HD Hyundai Heavy Industries Ulsan shipyard and the Hanwha Ocean Geoje facility. If he travels after the APEC summit in Gyeongju, the long distances and security concerns will pose significant challenges.

The two companies plan to operate based on information and strategies from their U.S. networks and government relations teams, rather than communicating directly with the U.S. government. HD Hyundai Heavy Industries is highlighting the geographical proximity between Gyeongju, where the APEC summit will be held, and Ulsan, as well as Ulsan's status as a symbol of the domestic manufacturing industry. Hanwha Ocean is expected to emphasize its connection with President Trump. In 1998, when Trump was a real estate businessman, he visited the Geoje facility of Daewoo Shipbuilding & Marine Engineering, the predecessor to Hanwha Ocean, due to his relationship with the late Kim Woo-choong, founder of Daewoo Group. As a result of this connection, Daewoo participated in the construction of Trump World Tower in Manhattan, New York.

At the end of last year, Hanwha Ocean acquired Philly Shipyard for $100 million (approximately 135.8 billion won). Hanwha Group was the first Korean company to acquire a U.S. shipyard. Hanwha Ocean aims to expand Philly Shipyard's annual production capacity from 1-1.5 vessels to 7-8 vessels. The company also plans to add maintenance, repair, and overhaul (MRO) functions to use the facility as a base for overseas maintenance operations. Notably, last month, President Trump signed Executive Order 8 to strengthen U.S. maritime dominance. As the U.S. administration is reportedly actively considering incentives to encourage allied shipbuilders to invest in the U.S., Hanwha Ocean expects a favorable environment to be created.