South Korean Shipyards Offer Solutions for U.S. Navy’s Crisis

The U.S. Navy is grappling with significant challenges in its shipbuilding programs, prompting South Korean shipbuilders to propose their expertise as a potential solution. President Donald Trump has expressed a desire to “Make American Shipbuilding Great Again,” and leaders from two prominent South Korean firms—HD Hyundai Heavy Industries and Hanwha Ocean—believe they can assist in achieving this goal.

Both companies are recognized for delivering some of the world’s most advanced warships for the South Korean navy consistently on time and within budget. As the U.S. Navy faces a pressing shipbuilding crisis—struggling to keep pace with an expanding Chinese fleet—South Korean officials assert their readiness to share critical technology and expertise.

At a recent hearing, John Phelan, the U.S. Secretary of the Navy, described the current state of U.S. shipbuilding as “a mess.” He reported that many programs are running significantly behind schedule and over budget, stating, “I think our best one is six months late and 57% over budget.” This candid assessment underscores longstanding issues that have plagued U.S. shipbuilding, which have been recognized for years.

During a visit to the shipyards in South Korea, it became clear how the country has emerged as a shipbuilding powerhouse. At Hanwha Ocean, representatives showcased a newly constructed facility designed to build four advanced frigates for the South Korean navy. The construction of this facility took just 14 months, and the frigates, measuring 122 meters and weighing 3,100 tons, will feature vertical launch systems for air defense and capabilities for launching anti-ship missiles and torpedoes. Each frigate will take approximately three years to complete, a timeline comparable to the delays currently affecting the U.S.’s Constellation-class frigate program.

The difficulties facing U.S. shipbuilding stem from frequent modifications to existing designs, particularly those adapted from Italian and French naval vessels. In contrast, South Korean shipbuilders attribute their efficiency to a combination of workforce experience and streamlined logistics.

Lee Jin, vice president at HD Hyundai Heavy Industries in Ulsan, noted that the average employee at their large shipyard has been with the company for 16 years. This stability contributes to a skilled workforce that can adapt to various projects. According to Sal Mercogliano, a shipping expert from Campbell University, the ability of South Korean shipyards to alternate between military and commercial contracts helps maintain a core group of skilled workers, enhancing productivity.

The decision to outsource commercial shipbuilding after World War II has led to significant challenges for U.S. shipbuilding, according to experts. President Trump also expressed concerns about this historical shift during discussions with South Korean President Lee Jae Myung in August, emphasizing the need for a revitalized shipbuilding industry in the U.S.

South Korean shipyards are continuously evolving their manufacturing processes. A representative from Hanwha highlighted that their proximity to commercial shipyards enables ongoing improvements, a luxury that U.S. military shipyards often lack due to inconsistent orders from the Pentagon. This uncertainty discourages investment in new technologies and processes, which could otherwise enhance efficiency.

Another factor contributing to South Korea’s shipbuilding success is its supply chain efficiency. The concentration of heavy industry in the southern part of the country allows Hanwha Ocean to source about 90% of the necessary parts and materials within a 50-kilometer radius of their Geoje shipyard. This logistical advantage streamlines production and reduces delays.

During a recent visit to the Hyundai yard, a CNN correspondent observed the dynamic operations of the shipyard, where large hull sections were maneuvered using specialized vehicles. The well-coordinated efforts of workers ensured safety while maintaining a rapid pace of construction, illustrating the effectiveness of their operations.

The prospect of U.S. Navy ships being built in South Korea raises questions about regulatory changes. Current U.S. laws restrict the Navy from purchasing foreign-built vessels, even from allies like South Korea, due to security considerations and a desire to protect domestic shipbuilding interests. Recent developments, such as a deal between the U.S. and Finland for icebreakers, could serve as a model for future collaborations, although differences in regulations apply to naval and Coast Guard projects.

Mercogliano believes there is potential for Congress to ease restrictions on commercial and auxiliary naval vessels, paving the way for increased collaboration between U.S. and South Korean shipyards. Jeon Yu-su, General Manager at Hanwha Ocean, expressed optimism about the possibility, stating, “Yes,” when asked if he envisions U.S. warships being manufactured at the Geoje shipyard.

As South Korean shipbuilders continue to advance their capabilities, their willingness to share expertise may play a crucial role in revitalizing the U.S. shipbuilding industry. The collaboration could benefit both nations and strengthen their defense capabilities in an increasingly competitive global landscape.