Korea-US partnership offers opportunities! Acting president visits HD Hyundai Heavy Industries to 'boost morale'

As shipbuilding becomes one of the three major areas of cooperation between South Korea and the United States, the South Korean government is highly emphasizing its domestic shipbuilding industry. On April 16, Prime Minister Han Deok-soo, acting president of South Korea, visited HD Hyundai Heavy Industries in Ulsan, stating, "Cooperation in the shipbuilding industry between South Korea and the U.S. will be a valuable opportunity to enhance mutual benefits and lead the resurgence of South Korea's shipbuilding industry."

On the same day, Han Deok-soo visited HD Hyundai Heavy Industries, listened to opinions from the industrial front line, comforted shipyard employees, and inspected the construction of the South Korean Navy's latest Aegis destroyer, the Dasan Jeong Yak-yong (다산정약용함).

Han Deok-soo stated, "The U.S. government has recently strongly expressed its will to revitalize its domestic shipbuilding industry. During a phone call with U.S. President Trump on April 8, I expressed my desire to further deepen the foundation of South Korea-U.S. diplomatic security and hoped to expand cooperation with the U.S. in areas such as LNG, shipbuilding, and trade. Both sides reached a consensus on strengthening South Korea-U.S. shipbuilding cooperation."

At the shipyard where the Dasan Jeong Yak-yong is being built, Han Deok-soo asked Kwon Oh-gap, chairman of HD Hyundai Group, "Are related companies concentrated in this area?" Kwon Oh-gap replied, "Approximately 3,000 partner companies are located in Busan, Ulsan, and Gyeongsangnam-do. For the construction of the latest Aegis destroyer, about 250 partner companies provide supporting services, so domestic production is almost completely achieved."

Han Deok-soo stated, "Amidst the global economic impact of the new U.S. tariff policy, we are considering various ways for South Korea to respond and are working to mitigate the impact on our domestic industries."

Han Deok-soo further emphasized, "Since the U.S. government has clearly stated that it will prioritize consultations with allied countries such as South Korea, we will do our utmost to minimize the tariff pressure we face during negotiations, while achieving mutual benefit between the two countries."

Regarding Han Deok-soo's visit to HD Hyundai Heavy Industries, the South Korean Prime Minister's Office stated, "As the shipbuilding industry has become one of the three major areas of cooperation between South Korea and the U.S., the acting president's visit to the world's largest and most technologically advanced shipbuilding base, HD Hyundai Heavy Industries' Ulsan shipyard, aims to comfort employees and demonstrate the importance of the shipbuilding industry."

It is understood that on April 7, the day before Han Deok-soo's phone call with Trump, HD Hyundai Heavy Industries signed a Memorandum of Understanding (MOU) with Huntington Ingalls Industries (HII), the largest naval shipbuilding company in the United States. The full name of this agreement is the Memorandum of Understanding on Improving Ship Production Efficiency and Advanced Shipbuilding Technology Cooperation, and it aims to explore collaborative opportunities to accelerate ship production to support warship and merchant ship construction projects."

HII President Brian L. Cuccias stated that both parties are establishing a cooperative relationship as destroyer builders. This is based on the fact that both HII and HD Hyundai Heavy Industries are building missile destroyers based on the Aegis combat system – the U.S. Navy's Arleigh Burke-class and the South Korean Navy's Sejong the Great/Jeongjo the Great-class.

Cuccias also stated that HD Hyundai Heavy Industries has an excellent supply chain and extensive experience in destroyer construction, so discussions between the two sides cover topics such as parts outsourcing or providing supply channels for destroyer construction.

Joo Won-ho, Executive Vice President and Head of the Special Ship Business Division at HD Hyundai Heavy Industries, stated that the establishment of this cooperative relationship marks a new milestone in cooperation between the two sides, providing a unique opportunity to expand shipbuilding expertise.

HII holds the key to the construction of U.S. nuclear-powered aircraft carriers and nuclear submarines – the Newport News Shipbuilding in Virginia and the Ingalls Shipbuilding in Mississippi, responsible for building Arleigh Burke-class guided missile destroyers and amphibious assault ships, playing a key role in the U.S. Navy's strength.