US Turns to South Korea to Revive Its Shipbuilding Industry Amid Growing Competition With China

The United States is looking to South Korea for expertise, investment and advanced manufacturing technology as it steps up efforts to rebuild its shipbuilding industry. The move comes amid growing concerns over America's limited ship production capacity, delays in naval construction and China's dominance in the global maritime sector. South Korean shipbuilders, known for their large-scale production capabilities and advanced manufacturing systems, are increasingly becoming important partners in Washington's efforts to modernise American shipyards and strengthen domestic maritime manufacturing.

According to recent reporting, Republican Senator Dave McCormick of Pennsylvania visited South Korea's Hanwha Ocean shipbuilding facilities to examine how the country's industrial capabilities could support America's shipbuilding revival. The initiative reflects growing bipartisan interest in strengthening the US maritime industrial base and reducing long-term production bottlenecks.

The United States has faced persistent challenges in expanding shipbuilding capacity, including ageing facilities, shortages of skilled workers, supply-chain constraints and rising construction costs. These problems have contributed to delays in naval programmes at a time when Washington is seeking to strengthen its maritime capabilities.

Hanwha Ocean has emerged as a key player in the effort through its ownership of Philly Shipyard in Philadelphia. The South Korean company completed its acquisition of the facility in December 2024 and has invested in modernising equipment, improving production processes and expanding workforce training.

The investment is intended to help the American shipyard improve efficiency and compete for a wider range of commercial and government contracts. Hanwha has also explored additional opportunities to expand its presence in the US maritime industry, including a proposed acquisition involving Austal USA's shipyard in Alabama.

South Korea's shipbuilding model offers several lessons for American manufacturers. Its leading shipyards use advanced automation, digital production planning and coordinated supplier networks to improve efficiency and reduce construction delays. Industry experts believe that adapting these practices could help American facilities increase output, although rebuilding production capacity will require sustained investment and a skilled workforce.

Another South Korean company, HD Hyundai, is also expanding its involvement in the American market. In October 2026, HD Hyundai and US construction company Kiewit announced plans to develop an advanced shipyard in the United States, with construction expected to begin in 2027 and full-scale operations targeted for 2029.

The partnerships come as Washington seeks to address the widening gap between American and Asian shipbuilding capabilities. China has established a dominant position in global commercial ship production, supported by extensive manufacturing infrastructure, established supplier networks and large-scale industrial capacity. South Korea remains a major competitor, particularly in technologically advanced vessel categories.

Although the US shipbuilding industry retains important expertise in naval construction, its commercial shipbuilding sector accounts for only a small share of global production. Strengthening commercial manufacturing could help expand the supplier base, improve workforce availability and support the wider maritime industrial ecosystem.

Foreign investment alone is unlikely to resolve America's shipbuilding challenges. Industry expansion will also depend on stable government procurement, predictable long-term contracts, modern infrastructure and the availability of trained workers. Differences over the extent to which allied countries should be permitted to build vessels for the US Navy could also influence the pace and structure of future cooperation. For Washington, the challenge is to benefit from South Korean expertise while ensuring that the investment strengthens domestic manufacturing rather than creating long-term dependence on overseas production.

The success of the initiative will ultimately depend on whether upgraded American shipyards can deliver vessels more efficiently, reduce construction delays and establish a sustainable production base. As competition with China intensifies, cooperation with South Korea is emerging as an important part of the United States' broader effort to restore its maritime industrial strength.

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