On October 27, 2025, as President Trump prepares to visit South Korea, heavy industries from the United States and South Korea announced on Sunday, October 26, that they will collaborate to build naval auxiliary vessels.
According to Newsmax, South Korea’s HD Hyundai Heavy Industries and Huntington Ingalls Industries from the United States signed a memorandum of understanding in Gyeongju, South Korea on the 26th to jointly construct naval auxiliary vessels for the U.S. Navy.
This marks the first collaboration between South Korean and American companies in the naval shipbuilding sector, signaling a significant step in the military and commercial shipbuilding cooperation between the two countries.
The signing of this agreement coincides with the Asia-Pacific Economic Cooperation (APEC) summit, as President Trump is expected to visit Gyeongju soon and hold a summit with South Korean President Lee Jae Myung.
Under the agreement, the cooperation will primarily focus on four key areas: jointly investing in building distributed shipbuilding facilities, strategically collaborating on U.S. Navy auxiliary projects, conducting joint engineering research and development in artificial intelligence and robotics technology, and enhancing ship lifecycle support in the Indo-Pacific region.
Both American and South Korean companies have confirmed that they will participate in the conceptual design of the U.S. Navy’s next-generation logistics vessels. These new vessels will provide fuel and supplies to combat ships, with improved mobility and operational efficiency.
Eric Chewning, Executive Vice President of Huntington Ingalls, stated about the agreement, “This partnership is not only a collaboration between two companies but also a deep cooperation between two countries, which will drive enduring changes in the U.S. military and commercial shipbuilding industry.”
In a statement, HD Hyundai Heavy Industries mentioned that the signing of this cooperation memorandum highlights the close economic and military ties between South Korea and the United States.
Industry experts believe that the collaboration between South Korean and American shipbuilding companies will not only enhance the U.S. Navy’s capability in building auxiliary vessels but also potentially pave the way for technical exchanges in cutting-edge fields like artificial intelligence and robotics.
Furthermore, through joint investments and facility sharing, both parties aim to optimize shipbuilding processes, reduce costs, and improve efficiency.
To support this collaboration, HD Hyundai Heavy Industries plans to supply modular ship hulls to Huntington Ingalls’ shipyards in Newport News and Ingalls, and explore joint investments in establishing new shipyards or acquiring existing shipbuilding facilities in the United States.
Washington seeks deep cooperation with Seoul to rapidly enhance the U.S. shipbuilding capacity to cope with intense global competitive pressures, especially from the rapid expansion of the Chinese navy.
According to relevant data, the United States currently produces fewer than five large ocean-going vessels annually, while China produces over 1,700 each year.
Prior to this, U.S. Navy Secretary John Phelan admitted during congressional testimony that U.S. Navy shipbuilding projects generally face serious delays and cost overruns, with even the best projects being delayed by six years and exceeding budgets by 57%.
This South Korean-American shipbuilding cooperation is a significant component of South Korea’s support for the Make America’s Shipbuilding Great Again (MASGA) initiative. According to this initiative, South Korea is set to invest $150 billion in the U.S. shipbuilding industry, which is part of a $350 billion investment plan in the United States pledged by South Korea earlier.
The Make America’s Shipbuilding Great Again initiative arose from the trade negotiations following the Trump administration’s tariff reduction for South Korea at the end of July, aiming to help revitalize the American shipbuilding industry to counter China’s leading position in the global shipbuilding sector.