South Korea counts on shipbuilding to ease US tariff woes

At an APEC finance ministers’ meeting in South Korea in May, US Trade Representative Jamieson Greer met Chung Ki-sun, vice chairman of HD Hyundai, the country’s largest shipbuilder, before he met Seoul’s top officials.

“South Korea’s shipbuilding and defence industries see a window of opportunity,” said Kim Dae-jong, a professor at Sejong University.

HOW DOES IT HELP THE US? 

Greer also met with the CEO of Hanwha Ocean, the first non-American company authorised to carry out a dry-dock maintenance of a US Navy vessel.

The move last September was seen as significant as it signalled that Washington sees South Korea, where it already has 28,000 US troops stationed, as a strategic defence hub.

With worries growing about China’s expanding naval fleet and potential conflict in the Taiwan Strait, the US has begun seeking reliable overseas shipyards to support its operations in the Asia-Pacific region.

The global market for ship maintenance, repair, and overhaul is projected to exceed $60 billion annually, according to industry estimates.

ANY PROBLEMS? 

Despite multi-billion-dollar contracts, data suggests South Korea’s shipbuilding industry is losing ground in the global race.

China dominates with South Korea’s market share dropping, according to industry data.