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Korea Herald
a day ago
- Business
- Korea Herald
US senator says Congress to review shipbuilding reforms after Lee-Trump summit
A US senator said Wednesday that Congress will review what legislative reforms may be needed to facilitate shipbuilding cooperation with South Korea, based on the outcome of next week's summit between President Lee Jae Myung and US President Donald Trump. Sen. Andy Kim (D-NJ) made the remarks during a press availability in Seoul, days before Lee and Trump are set to hold their first summit in Washington on Monday (US time), following a recent tariff agreement between the two countries. "There might be some reforms that can make it more efficient, speed the process, and we'll look at that appropriately," Kim said when asked about US shipbuilding regulations prohibiting foreign involvement. "I cannot move forward until I have a sense of what comes out from the summit next week. So we'll see how that's structured and how the investment is laid out, and then we'll move with the appropriate level of urgency," he said. With the tariff deal, South Korea has proposed large-scale shipbuilding cooperation projects, dubbed "Make American Shipbuilding Great Again (MASGA)," to held restore the sluggish US shipbuilding industry, including building new shipyards in the United States and partnerships on maintenance, repair and overhaul (MRO) projects. However, concerns have been raised about how quickly the shipbuilding projects can move forward, as US laws, such as the Jones Act and the Byrnes-Tollefson Amendment, remain as a legal barrier restricting foreign operations in commercial shipping and military shipbuilding. "If there are proposals needed for reforms that make sense to both of our countries, I think it could move fast," Kim said. Kim also addressed the need for the US to be clear about its goals in shipbuilding cooperation with South Korea, such as the number and type of ships it needs to build, saying that any legislative support would start from there. As a New Jersey resident who lives about 15 minutes away from the Philly Shipyard, run by South Korea's Hanwha Ocean, Kim described South Korea as the "best partner" in boosting American shipbuilding capabilities. "We are supportive of President Trump's efforts to continue to increase shipbuilding capabilities, and we're prepared to provide whatever type of legislation as well as resources behind it to be able to make that successful," he said. Regarding the Trump administration's push for "modernizing the alliance," which potentially calls for reorienting the role of US troops in Korea to deter China, Kim said related bilateral discussions should take place in a way that ensures US commitment to deterring North Korean threats, as well as addressing shared regional challenges. "I want to make sure that ... in the Indo-Pacific, (we) are able to address the array of different challenges and threats that we face. We can do that in a way that still protects extended deterrence, protects our interests here on the Korean Peninsula," Kim said. "Any changes that we would see in significant ways to troop presence, we would want to make sure that Congress has a role in oversight," he added. Kim, the first Korean American elected to the Senate, visited South Korea this week with Sen. Tammy Duckworth (D-Il) for meetings with government officials and business leaders. They also met with President Lee. Kim said Lee's decision to stop in Japan before going to Washington for the summit with Trump was a "brilliant move." "I can think of few opportunities that are more impactful than recommitment to the trilateral process between the United States, South Korea and Japan," he said. (Yonhap)
Asharq Al-Awsat
05-05-2025
- Business
- Asharq Al-Awsat
South Korea's Hanwha Ocean Targets US Navy Orders as Trump Seeks Shipbuilding Ties
South Korean shipbuilder Hanwha Ocean aims to boost its revenue from overseas military vessels to around 4 trillion won ($2.91 billion) by 2030 and hopes to pick up more repair orders from the US Navy, a senior executive told Reuters. The Asian country is a major global shipbuilder and trade talks with the US on tariffs brought up possible cooperation in the sector after US President Donald Trump signed an executive order to restore US shipbuilding. Hanwha Ocean, formerly Daewoo Shipbuilding, is one of the largest shipbuilders in the world with an order book of $31.43 billion as of the end of March. It acquired a US shipyard in Philadelphia last year to expand in the market. Its naval ships business, which has built dozens of submarines and surface vessels used by the South Korean Navy, has won two orders from the US Navy since last year to repair and overhaul its ships for the first time. "I think we may be the biggest shipyard in the world that has taken on these maintenance, repair and overhaul orders from the US Navy," said Steve SK Jeong, head of the Naval Ship Global Business at Hanwha Ocean, days after US Secretary of the Navy John Phelan visited its shipyard. "It is not very profitable, but learning the process of working with the US Navy is valuable, which will help if we win newbuild orders." Hanwha Ocean hoped to win a double-digit number of US Navy maintenance and repair orders before 2030, Jeong said. Trump has vowed to spend "a lot of money on shipbuilding" to restore US capacity, and cited concern over how his country has fallen behind in an industry that is also dominated by China. Still, US laws can make it harder for foreign shipyards even if they have US operations. They are prohibited from building US Navy vessels, due to the Byrnes-Tollefson Amendment of the US Department of Defense Appropriations Act. TRANSPLANTING PROCESSES Hanwha Ocean's Philadelphia Shipyard is trying to get a license that clears it to build US Navy vessels, but transplanting cutting-edge manufacturing processes honed from competition with other South Korean and Chinese shipyards is not as simple as bringing in some automated welding machines, Jeong said. "I think the US shipbuilding industry hasn't had to compete very much. Facilities are old, and there's a shortage of technicians," Jeong said. "We are looking to modernize facilities, train and equip workers, and bring in our manufacturing process that can build the same ship in, I think, two-thirds the time or less as that of a US shipyard." Jeong said the company is investing in South Korea to use existing facilities and expand naval ship capacity to build five submarines and three surface vessels at the same time by 2029, from two submarines and two surface vessels now. Despite building 17 submarines for the South Korean Navy since 1987, Hanwha Ocean has only actively competed for overseas orders in the last few years as South Korea's low birthrate and shrinking military-age population risk cooling local demand. It is competing to export submarines to Poland and Canada, a frigate to Thailand as well as knocking on the door in markets in the Middle East, South America, North Africa and Southeast Asia, to build up a sustained flow of orders that would bring foreign sales to 4 trillion won by 2030, Jeong said. That would be about four times the size of its 1.05 trillion won of revenue in 2024.
CNA
05-05-2025
- Business
- CNA
South Korea's Hanwha Ocean targets US Navy orders as Trump seeks shipbuilding ties
SEOUL: South Korean shipbuilder Hanwha Ocean aims to boost its revenue from overseas military vessels to around 4 trillion won (US$2.91 billion) by 2030 and hopes to pick up more repair orders from the US Navy, a senior executive told Reuters. The Asian country is a major global shipbuilder and trade talks with the US on tariffs brought up possible cooperation in the sector after US President Donald Trump signed an executive order to restore US shipbuilding. Hanwha Ocean, formerly Daewoo Shipbuilding, is one of the largest shipbuilders in the world with an order book of US$31.43 billion as of the end of March. It acquired a US shipyard in Philadelphia last year to expand in the market. Its naval ships business, which has built dozens of submarines and surface vessels used by the South Korean Navy, has won two orders from the US Navy since last year to repair and overhaul its ships for the first time. "I think we may be the biggest shipyard in the world that has taken on these maintenance, repair and overhaul orders from the US Navy," said Steve SK Jeong, head of the Naval Ship Global Business at Hanwha Ocean, days after US Secretary of the Navy John Phelan visited its shipyard. "It is not very profitable, but learning the process of working with the US Navy is valuable, which will help if we win newbuild orders." Hanwha Ocean hoped to win a double-digit number of US Navy maintenance and repair orders before 2030, Jeong said. Trump has vowed to spend "a lot of money on shipbuilding" to restore US capacity, and cited concern over how his country has fallen behind in an industry that is also dominated by China. Still, US laws can make it harder for foreign shipyards even if they have US operations. They are prohibited from building US Navy vessels, due to the Byrnes-Tollefson Amendment of the US Department of Defense Appropriations Act. TRANSPLANTING PROCESSES Hanwha Ocean's Philadelphia Shipyard is trying to get a licence that clears it to build US Navy vessels, but transplanting cutting-edge manufacturing processes honed from competition with other South Korean and Chinese shipyards is not as simple as bringing in some automated welding machines, Jeong said. "I think the US shipbuilding industry hasn't had to compete very much. Facilities are old, and there's a shortage of technicians," Jeong said. "We are looking to modernise facilities, train and equip workers, and bring in our manufacturing process that can build the same ship in, I think, two-thirds the time or less as that of a US shipyard." Jeong said the company is investing in South Korea to use existing facilities and expand naval ship capacity to build five submarines and three surface vessels at the same time by 2029, from two submarines and two surface vessels now. Despite building 17 submarines for the South Korean Navy since 1987, Hanwha Ocean has only actively competed for overseas orders in the last few years as South Korea's low birthrate and shrinking military-age population risk cooling local demand. It is competing to export submarines to Poland and Canada, a frigate to Thailand as well as knocking on the door in markets in the Middle East, South America, North Africa and Southeast Asia, to build up a sustained flow of orders that would bring foreign sales to 4 trillion won by 2030, Jeong said.
Yahoo
05-05-2025
- Business
- Yahoo
South Korea's Hanwha Ocean targets US Navy orders as Trump seeks shipbuilding ties
By Joyce Lee SEOUL (Reuters) -South Korean shipbuilder Hanwha Ocean aims to boost its revenue from overseas military vessels to around 4 trillion won ($2.91 billion) by 2030 and hopes to pick up more repair orders from the U.S. Navy, a senior executive told Reuters. The Asian country is a major global shipbuilder and trade talks with the U.S. on tariffs brought up possible cooperation in the sector after U.S. President Donald Trump signed an executive order to restore U.S. shipbuilding. Hanwha Ocean, formerly Daewoo Shipbuilding, is one of the largest shipbuilders in the world with an order book of $31.43 billion as of the end of March. It acquired a U.S. shipyard in Philadelphia last year to expand in the market. Its naval ships business, which has built dozens of submarines and surface vessels used by the South Korean Navy, has won two orders from the U.S. Navy since last year to repair and overhaul its ships for the first time. "I think we may be the biggest shipyard in the world that has taken on these maintenance, repair and overhaul orders from the U.S. Navy," said Steve SK Jeong, head of the Naval Ship Global Business at Hanwha Ocean, days after U.S. Secretary of the Navy John Phelan visited its shipyard. "It is not very profitable, but learning the process of working with the U.S. Navy is valuable, which will help if we win newbuild orders." Hanwha Ocean hoped to win a double-digit number of U.S. Navy maintenance and repair orders before 2030, Jeong said. Trump has vowed to spend "a lot of money on shipbuilding" to restore U.S. capacity, and cited concern over how his country has fallen behind in an industry that is also dominated by China. Still, U.S. laws can make it harder for foreign shipyards even if they have U.S. operations. They are prohibited from building U.S. Navy vessels, due to the Byrnes-Tollefson Amendment of the U.S. Department of Defense Appropriations Act. TRANSPLANTING PROCESSES Hanwha Ocean's Philadelphia Shipyard is trying to get a licence that clears it to build U.S. Navy vessels, but transplanting cutting-edge manufacturing processes honed from competition with other South Korean and Chinese shipyards is not as simple as bringing in some automated welding machines, Jeong said. "I think the U.S. shipbuilding industry hasn't had to compete very much. Facilities are old, and there's a shortage of technicians," Jeong said. "We are looking to modernise facilities, train and equip workers, and bring in our manufacturing process that can build the same ship in, I think, two-thirds the time or less as that of a U.S. shipyard." Jeong said the company is investing in South Korea to use existing facilities and expand naval ship capacity to build five submarines and three surface vessels at the same time by 2029, from two submarines and two surface vessels now. Despite building 17 submarines for the South Korean Navy since 1987, Hanwha Ocean has only actively competed for overseas orders in the last few years as South Korea's low birthrate and shrinking military-age population risk cooling local demand. It is competing to export submarines to Poland and Canada, a frigate to Thailand as well as knocking on the door in markets in the Middle East, South America, North Africa and Southeast Asia, to build up a sustained flow of orders that would bring foreign sales to 4 trillion won by 2030, Jeong said. That would be about four times the size of its 1.05 trillion won of revenue in 2024. ($1 = 1,376.08 won) Sign in to access your portfolio
Reuters
05-05-2025
- Business
- Reuters
South Korea's Hanwha Ocean targets US Navy orders as Trump seeks shipbuilding ties
Summary Companies Targets $2.9 billion in overseas military revenue by 2030 Acquired Philadelphia shipyard to expand U.S. presence Plans to modernise U.S. facilities, train workers for efficiency SEOUL, May 5 (Reuters) - South Korean shipbuilder Hanwha Ocean aims to boost its revenue from overseas military vessels to around 4 trillion won ($2.91 billion) by 2030 and hopes to pick up more repair orders from the U.S. Navy, a senior executive told Reuters. The Asian country is a major global shipbuilder and trade talks with the U.S. on tariffs brought up possible cooperation in the sector after U.S. President Donald Trump signed an executive order to restore U.S. shipbuilding. Hanwha Ocean, formerly Daewoo Shipbuilding, is one of the largest shipbuilders in the world with an order book of $31.43 billion as of the end of March. It acquired a U.S. shipyard, opens new tab in Philadelphia last year to expand in the market. ( opens new tab Its naval ships business, which has built dozens of submarines and surface vessels used by the South Korean Navy, has won two orders from the U.S. Navy since last year to repair and overhaul its ships for the first time. "I think we may be the biggest shipyard in the world that has taken on these maintenance, repair and overhaul orders from the U.S. Navy," said Steve SK Jeong, head of the Naval Ship Global Business at Hanwha Ocean, days after U.S. Secretary of the Navy John Phelan visited its shipyard. "It is not very profitable, but learning the process of working with the U.S. Navy is valuable, which will help if we win newbuild orders." Hanwha Ocean hoped to win a double-digit number of U.S. Navy maintenance and repair orders before 2030, Jeong said. Trump has vowed to spend "a lot of money on shipbuilding" to restore U.S. capacity, and cited concern over how his country has fallen behind in an industry that is also dominated by China. Still, U.S. laws can make it harder for foreign shipyards even if they have U.S. operations. They are prohibited from building U.S. Navy vessels, due to the Byrnes-Tollefson Amendment of the U.S. Department of Defense Appropriations Act. TRANSPLANTING PROCESSES Hanwha Ocean's Philadelphia Shipyard is trying to get a licence that clears it to build U.S. Navy vessels, but transplanting cutting-edge manufacturing processes honed from competition with other South Korean and Chinese shipyards is not as simple as bringing in some automated welding machines, Jeong said. "I think the U.S. shipbuilding industry hasn't had to compete very much. Facilities are old, and there's a shortage of technicians," Jeong said. "We are looking to modernise facilities, train and equip workers, and bring in our manufacturing process that can build the same ship in, I think, two-thirds the time or less as that of a U.S. shipyard." Jeong said the company is investing in South Korea to use existing facilities and expand naval ship capacity to build five submarines and three surface vessels at the same time by 2029, from two submarines and two surface vessels now. Despite building 17 submarines for the South Korean Navy since 1987, Hanwha Ocean has only actively competed for overseas orders in the last few years as South Korea's low birthrate and shrinking military-age population risk cooling local demand. It is competing to export submarines to Poland and Canada, a frigate to Thailand as well as knocking on the door in markets in the Middle East, South America, North Africa and Southeast Asia, to build up a sustained flow of orders that would bring foreign sales to 4 trillion won by 2030, Jeong said. That would be about four times the size of its 1.05 trillion won of revenue in 2024. ($1 = 1,376.08 won)
