US looks to South Korea as it tries to revive shipbuilding and catch up to China

American and South Korean shipbuilders agree to cooperate in move analysts say could strengthen US power projection in the Indo-Pacific

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Collaboration between South Korea’s HHI and American firm HII – both of which already build Aegis-capable destroyers – is seen as having “significant potential”. Photo: EPA-EFE/South Korean Defence Ministry

Published: 8:00pm, 13 Apr 2025Updated: 8:33pm, 13 Apr 2025

The United States is looking to South Korea as it tries to boost shipbuilding capacity in response to the “desperate reality” of China’s rapid navy build-up, a move that could strengthen US power projection in the region, analysts say.

South Korean shipbuilding giant HD Hyundai Heavy Industries (HHI) on Monday said it had signed a memorandum of understanding to cooperate with US firm Huntington Ingalls Industries (HII).

HHI said the “ship alliance” was signed during this week’s Sea Air Space 2025 defence exhibition in Washington. It said the aim was to “maximise the production efficiency of shipbuilding, while sharing know-how and capabilities to improve shipbuilding costs and delivery times”.

“We expect that cooperation between the representative shipbuilding companies of Korea and the US, who are blood allies, will not only develop the shipbuilding industry of both countries but also greatly contribute to strengthening security cooperation,” said Joo Won-ho, chief executive of naval and special shipbuilding at HHI.

The cooperation will include promoting process automation and the introduction of robots and artificial intelligence to build a digital shipyard, according to the HHI statement.

HII and HHI, two of the world’s leading shipbuilders, signed a memorandum of understanding this week during the Sea Air Space expo in Washington. Photo: Handout

HHI is one of the world’s largest shipbuilders, with a market share of about 10 per cent, according to its website. It has the capacity to build naval surface and underwater combatants and auxiliary vessels.