[Interview] Joo Wonho, Head of Naval Vessel Division at HD Hyundai Heavy Industries: "Entering the Global Market with the U.S."

HD Hyundai Declares "MASGA Inaugural Year" for the New Year
Establishing a Foothold for the Next Five Years...
"Beyond Exports, Toward Joint Market Entry"
Expanding MRO from Military Support Ships to Combat Vessels

HD Hyundai Heavy Industries has declared this year as the inaugural year of "MASGA" (Make American Shipbuilding Great Again) and is seeking to enter the U.S. and global naval vessel markets. The company’s strategy goes beyond Korea-U.S. shipbuilding cooperation, aiming to use "MASGA" as a springboard to generate new demand in the global market.

In a recent written New Year’s interview with The Asia Business Daily, Joo Wonho, President and CEO of the Ship and Medium-sized Vessel Business Division at HD Hyundai Heavy Industries, stated, "The United States is currently seen as another market for us, but in the future, we could enter the global naval vessel market together with the U.S." Although HD Hyundai Heavy Industries has previously expressed its intention to jointly build military support vessels and other warships needed by the United States in cooperation with major U.S. defense shipbuilder Huntington Ingalls Industries, this is the first time the company has presented a vision to expand its reach to the global market based on this partnership. The strategy is not merely to sell naval vessels to the U.S., but to jointly create new global demand by linking supply chains and technologies.

Joo Wonho, President and CEO of HD Hyundai Heavy Industries Shipbuilding and Medium-sized Vessel Business Division. HD Hyundai Heavy Industries

Joo emphasized, "The U.S. is a market that Korea’s defense industry must enter to become a global powerhouse, and at the center of this is maritime defense, led by the shipbuilding industry." He added, "The U.S. is ahead in areas such as the Aegis Combat System and AI-based mission automation, while we possess accumulated know-how and data in shipbuilding and maritime defense. We need to approach this as a strategic partnership where both sides can win."

The Ship and Medium-sized Vessel Business Division became the flagship organization of HD Hyundai Heavy Industries following its merger with HD Hyundai Mipo in December last year, creating an integrated HD Hyundai Heavy Industries. This division, which combines defense, special-purpose ships, and medium-sized vessels, has emerged as a new growth engine for HD Hyundai’s shipbuilding sector since the integration. Joo commented, "Defense and special-purpose ships are not businesses that simply replace merchant ships; they will be at the core of creating a 'co-growth cycle.'" Joo was appointed head of the Special Ship Business Division at HD Hyundai Heavy Industries in 2022 and was promoted to President at the end of last year. HD Hyundai Heavy Industries has established a system of specialized CEOs for each business unit-sales, special-purpose ships, engines and machinery, and shipbuilding-under the overall CEO, and Joo is the only one among the division heads to be included in the executive team.

HD Hyundai Heavy Industries’ pursuit of entry into the global naval vessel market in cooperation with the U.S., which has the world’s largest naval force, is driven by the global trend of naval power restoration. As geopolitical tensions rise, major countries are replacing aging naval vessels and modernizing their navies. The strategic importance of defense and special-purpose ships is also growing rapidly. Joo stated, "As many countries around the world move to restore their naval power, the very structure of the naval vessel market is changing. We are proactively responding to the trend of increasing business share in defense and special-purpose ships."

Joo Wonho, President and CEO of the Ship and Medium-sized Vessel Business Division at HD Hyundai Heavy Industries. HD Hyundai Heavy Industries

Joo predicted that following the "MASGA inaugural year," Korea-U.S. shipbuilding cooperation will expand beyond technology to include joint investment, establishment of local subsidiaries, and shipyard operations. The scope of cooperation could extend from merchant ships and military support vessels to combat ships and unmanned assets. He said, "We plan to develop the Ship and Medium-sized Vessel Business Division of the integrated HD Hyundai Heavy Industries into the 'mother plant' of the naval vessel industry, serving as a core base supporting regional hubs on each continent. The United States will be a key pillar of this global network."

Last April, HD Hyundai Heavy Industries established a partnership with Huntington Ingalls, the largest U.S. defense shipbuilder. Joo described this as "a strategic alliance between the world’s leading shipbuilder and the top naval vessel builder." He cited the fact that the top executives of both companies are engineers with deep expertise in shipbuilding and naval vessels as a factor accelerating collaboration. "To help rebuild the U.S. shipbuilding industry, we will work together to enhance productivity by developing human resources, supplying equipment, and modernizing production infrastructure," he said.

The two companies are expected to expand their cooperation from military support vessels to the combat ship sector. Joo noted, "Both companies have common experience in building Aegis destroyers of the same specifications. Once cooperation is fully underway, we expect that the U.S.’s current Aegis destroyer construction capacity-about 1.6 ships-can be more than doubled in a short period."

On October 26 last year, at the Lahan Select Hotel in Gyeongju, Gyeongbuk, the venue for 'APEC 2025,' Joo Wonho, President of the Special Ship Division at HD Hyundai Heavy Industries (third from the left), and Eric Tuning, Executive Vice President of Strategic Development at Huntington Ingalls, along with other representatives from both companies, posed for a commemorative photo after signing the Memorandum of Understanding on Cooperation for the Construction of Merchant Ships and Warships. HD Hyundai

The companies are also expanding cooperation in the U.S. Navy maintenance, repair, and overhaul (MRO) market. HD Hyundai Heavy Industries successfully completed MRO work on the 41,000-ton U.S. cargo replenishment ship 'USNS Alan Shepard' last September. Joo stated, "We started with military support vessels for MRO, but to fully enter the MRO business, we need solutions optimized for the U.S. market and predictable volumes. This year, we expect to conduct pilot MRO work on combat ships as well." Furthermore, the integrated HD Hyundai Heavy Industries can now utilize the docks and quays of the former HD Hyundai Mipo, which is expected to further enhance competitiveness.

They have also joined forces in the merchant ship sector. Due to high labor costs and gaps in production infrastructure, the U.S. has seen its competitiveness in building merchant ships for global routes significantly weaken. HD Hyundai Heavy Industries is working with U.S. maritime services company Edison Chouest Offshore to jointly build medium-sized LNG-powered container ships in the U.S. Joo mentioned, "With the decline in merchant shipbuilding, procurement of equipment in the U.S. has become limited. We are also holding working-level discussions on ways for Korea to participate in this sector."

He stressed that legal and institutional reforms are necessary for smooth shipbuilding cooperation with the U.S. Regarding the Jones Act, he said, "While it has served as a protective barrier for the U.S. shipbuilding industry, now is the time for a sober assessment of whether it has become an obstacle to revitalization." The Jones Act, which restricts cargo transport between U.S. ports to U.S.-built ships, is often criticized for hindering the development of the U.S. shipbuilding industry.

Joo concluded, "We should begin with cooperation through technology sharing, followed by direct investment. Since all roles performed in both the U.S. and Korea are subject to U.S. laws, regulations, and systems, we are continuously monitoring for volatility."