USNS Yukon, an underway replenishment oiler for the U.S. Navy, is seen in this undated photo. Hanwha Ocean said on Nov. 12 that it won a maintenance, repair and operation (MRO) bid for the USNS Yukon. It is the second MRO bid the Korean company has won from the U.S. Navy. Courtesy of Hanwha Ocean
Partnership to support Trump’s interest in Korean capabilities
By Ko Dong-hwan
Minister of Trade, Industry and Energy Ahn Duk-geun speaks during a press conference in Sejong, Monday. Courtesy of Ministry of Trade, Industry and Energy
Korea will strengthen its ties with the United States by supporting the U.S. Navy, in line with plans from the incoming Donald Trump administration to boost its shipbuilding sector, the industry minister said Monday.
Industry Minister Ahn Duk-geun returned to Seoul on Sunday after a weeklong state visit to the U.S.
His announcement in Sejong comes after Trump expressed his intent to work with the Korean government and companies to maintain and repair American warships following his inauguration on Jan. 20.
Ahn said the Trump administration plans to restructure U.S. laws “in a substantial degree” to improve the country’s shipbuilding capability.
Behind such plans is the incoming president’s goal to further empower the U.S. Navy, according to the minister. The minister said he learned this after meeting with U.S. Sen. Todd Young from Indiana and Julia Nesheiwat, a former homeland security adviser under the Trump administration, who served from 2020 to 2021.
“I learned, after talking to Nesheiwat, that the incoming administration is now trying to change the Jones Act to strengthen the country’s shipbuilding industry and Navy fleet. That law has remained unchanged since World War II,” Ahn said.
The Jones Act, also known as the Merchant Marine Act of 1920, requires cargo transported within U.S. waters to be transported on vessels that are built and registered in the U.S., owned by U.S. citizens and crewed by Americans.
“This shows how [far] the Trump administration is willing to go to achieve those goals," he added.
Ahn said he had discussed with his American counterparts to advocate for a partnership between Korea and the U.S. to achieve these goals.
“China may be ahead of Korea in scale. But we surpass them with technology and capability. I convinced the Americans that Korea will help the U.S. strengthen its shipbuilding capabilities for both military and commercial vessels,” Ahn said.
“We will start discussing with John Phelan, who has been nominated by Trump for U.S. Secretary of the Navy, in about one or two months following his qualification hearing.”
Trump, days after winning his election on Nov. 3, engaged in talks with President Yoon Suk Yeol and said he wants Korea’s cooperation for the U.S. shipbuilding industry and maintenance, repair and operations (MRO) of the U.S. Navy. The conversation came after the U.S. Congressional Research Service released a report that U.S. warships decreased from 318 in 2000 to 296 in 2020, while those of China increased from 210 to 360.
Korean shipbuilders have begun showing interest in the MRO business for the U.S. Navy. Hanwha Ocean and HD Hyundai Heavy Industries last year signed a master ship repair agreement with the U.S. Naval Supply Systems Command, qualifying themselves to conduct MRO bids for the U.S. fleet.
Last year, Hanwha Ocean secured two MRO contracts with the U.S. Navy for regular overhaul and inspection of U.S. naval vessels, becoming the first Korean firm to win such deals. In June last year, Hanwha Group, the parent company of Hanwha Ocean, also invested $100 million in Philly Shipyard in Pennsylvania to acquire a 100 percent stake in the U.S. shipbuilder. This marked the first time a Korean company entered the U.S. domestic shipbuilding industry.
English (United States) ·