In South Korea, the “speed battle” of officials and citizens that promotes “making the US shipbuilding industry great again” has begun. In response to Trump’s request to “request for the construction of domestic ships in the United States as soon as possible”, the South Korean Ministry of Planning, Finance and Industry, Commerce and Resources and other departments began specific work in August, came up with various plans, and discussed the investment plans of shipbuilding funds. Seoul University and the University of Michigan have also reached an exchange program for shipbuilding and marine engineering education to strengthen talent training.
In early August this year, South Korean shipbuilding company HD Hyundai Heavy Industry received an MRO order for the US Navy supply ship “USNS Alan Shepard”, and will carry out propeller cleaning, oil tank maintenance and on-board equipment inspections at berths in Ulsan, South Korea in September. MRO (Maintenance, Repair and Overhaul) refers to the entire process of systematic maintenance, repair and renovation of equipment, facilities or vehicles.
The MRO order of the “Alan Shepard” is the first substantial shipbuilding cooperation case under the MASGA project and is expected to be delivered to the U.S. Navy after the project is completed in November. Immediately afterwards, with Lee Zaiming’s visit to the United States, HD Hyundai and Samsung Heavy Industry signed multiple contracts and memorandums of understanding (MOU) with US companies respectively, including a multi-billion-dollar joint maritime investment plan for South Korea and the United States.
“South Korea can help the United States shorten its timeline and avoid waste in trial and error. We have a lot of experience to provide,” said Zheng Yuman, head of business planning at HD Hyundai Heavy Industry.
HD Hyundai manufactures 40 to 50 ships at Ulsan Shipyard every year. In November last year, it delivered the first ship of the 8,200-ton Aegis destroyer, the “Zhengzu King”, to the South Korean Navy, which is known as the “Fist of the South Korean Navy.”
HD Hyundai Heavy Industry executive told the Wall Street Journal that the “Zhengzu King” uses a large number of American technology and components, Lockheed Martin develops combat systems, RTX’s Thor provides missiles, and General Electric manufactures gas turbines. “This is basically an American warship.” South Korean industry managers said that if the “Zhengzu King” was built in the United States, the cost would be more than doubled and the construction time would be extended by about one-third.
The South Korean government has always provided policy and financial support for the shipbuilding industry. Driven by the International Maritime Organization (IMO) emission reduction target, it announced a decade-long plan for environmentally friendly ships in 2020, and plans to transform 528 ships from public and private sectors into environmentally friendly ships by 2030, and to expand the replenishment facilities for environmentally friendly fuels such as liquefied natural gas (LNG), electricity, etc. in stages. After Li Zaiming came to power, he promoted South Korean shipyards to expand their participation in the US market by proposing MASGA.
