- US and South Korea are in talks to boost shipyard investment and naval repair cooperation.
- South Korea seeks better tariff terms amid pressure after the US-Japan trade deal.
- China leads global shipbuilding with 234 warships, outpacing the US.
According to sources from the government and industry, South Korea and the United States have been in talks about a partnership in shipbuilding that may involve investments to upgrade US shipyards and additional assistance in repairing the US naval fleet, while Seoul aims for improved tariff conditions.
US President Donald Trump, prioritizing the rejuvenation of the aging American shipbuilding sector to compete with China, has frequently suggested collaboration with South Korea's advanced shipbuilding industry.
Having poured billions into shipbuilding capabilities, China has become the leading shipbuilder globally. According to the Center for Strategic and International Studies, it possesses the largest naval combat fleet globally, with 234 warships compared to the US Navy's 219.
"South Korea can use shipbuilding as leverage to gain some advantage in tariff negotiations," said Kim Suk Kyoon, a former commissioner of the Korea Coast Guard and an expert on maritime strategy.
Pressure on Seoul to finalize a deal on import tariffs has intensified following Japan's trade agreement with the US this week. Officials from South Korea are in Washington for trade discussions; however, a significant meeting planned for Friday has been delayed due to scheduling conflicts.
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South Korea ranks as the second-largest shipbuilder globally, and a source familiar with the discussions indicated that any collaboration should involve South Korean firms investing in the United States and providing greater support for repair and maintenance.
South Korea's suggestion for a "Korea-US manufacturing renaissance partnership" in sectors such as shipbuilding has garnered significant interest from the US, as Washington urged collaborative actions to address China's expansion in shipbuilding, according to unnamed Seoul trade officials who were not permitted to speak to the press.
South Korea's industry ministry stated that discussions were underway between the US and South Korea regarding collaboration in manufacturing sectors, including shipbuilding, but did not provide further details.