【By Observer News Network, Wang Kaiwen】On August 25 local time, US President Trump met with South Korean President Lee Jae-myung at the White House. Promoting the development of the US shipbuilding industry was one of the key topics discussed by both sides.

"In order to please Trump, South Korea is betting on reviving the struggling US shipbuilding industry," Reuters reported on the 25th under the title. While the South Korean and American sides were locked in a dispute over the details of trade and security agreements, Lee Jae-myung tried to push for cooperation by promising "making American shipbuilding great again."

"This may be South Korea's only card."

According to the trade agreement announced by the United States and South Korea in July this year, the US will reduce the tariff rate of South Korean products exported to the US, including cars, to 15%, while South Korea will invest 350 billion USD in the US, of which 1.5 billion USD will be allocated as special funds for the US-South Korea shipbuilding cooperation.

South Korea is the second-largest shipbuilding country in the world after China. According to data from Clarksons cited by the Chinese Academy of Ocean Engineering Science and Technology Development Strategy Research Institute, the share of China, South Korea, and Japan in global shipbuilding deliveries in the middle of 2024 was 51.99%, 26.78%, and 11.67% respectively, and their share in new orders was 70.11%, 16.49%, and 4.92% respectively.

Compared to the three countries of China, South Korea, and Japan, the US shipbuilding industry has fallen far behind. Reuters reported that the US shipyards, which had the highest global capacity during World War II, had dropped to a market share of 0.04% in the global market by 2024.

Since the beginning of his second presidential term, Trump has made revitalizing the increasingly declining US shipbuilding industry a top priority, trying to catch up with China, the world's largest shipbuilding country. He has also repeatedly mentioned the possibility of cooperating with South Korea.

"We will return to the shipbuilding industry," Trump said when he met with Lee Jae-myung in the White House Oval Office on the 25th.

On August 25, 2025, in Washington, D.C., U.S. President Donald Trump met with South Korean President Lee Jae-myung at the White House. Oriental IC

South Korea naturally understands Trump's mindset. As early as during the US-South Korea trade negotiations in July this year, the South Korean side proposed a shipbuilding cooperation project named "Make American Shipbuilding Great Again" (MASGA).

"Seoul sees shipbuilding as its most powerful - perhaps the only - card to deal with Trump," The Washington Post commented.

Trump praised South Korea's shipbuilding capabilities on the 25th, saying that the US is considering signing a shipbuilding contract with South Korea. "We are considering ordering some ships, and the ships built by South Korea are very good," Trump said. "They are also considering bringing some shipyards to our country to help us restart the shipbuilding process."

According to Yonhap News, after concluding his meeting with Trump on the 25th, Lee Jae-myung attended the US-South Korea Business Roundtable, where he stated that South Korea would promote the MASGA project to help the US revive its shipbuilding industry and thereby strengthen its military power. Lee Jae-myung also said that in the fields of manufacturing and shipbuilding, South Korea is the best and only partner for the US, and South Korean companies will definitely play a key role in the revival of the US shipbuilding industry.

According to Lee Jae-myung's visit schedule, he will visit one of the largest US shipyards, Hanwha Philadelphia Shipyard, on August 26 local time. NBC reported that Trump might accompany him.

In late 2024, Hanwha Group acquired the Philadelphia Shipyard in the US for 10 million USD, becoming the first South Korean company to acquire a US shipyard. The Lee Jae-myung office stated that Hanwha Group plans to invest 5 billion USD later to increase the annual output of the shipyard from less than two to 20 ships.

According to the Ministry of Industry of South Korea, at the US-South Korea Business Roundtable, South Korean and American companies signed 11 manufacturing-related agreements and memorandums of understanding, covering areas such as shipbuilding, nuclear power, aviation, liquefied natural gas, and critical minerals.

In terms of shipbuilding, HD Hyundai, the Korea Development Bank, and the American private equity fund Cerberus Capital signed a memorandum of understanding to strengthen and revitalize the maritime forces of the US and its allies, and the two parties will strengthen cooperation in areas such as the US shipbuilding industry, maritime logistics infrastructure, and advanced maritime technology; Samsung Heavy Industries and the American shipbuilding company Vigor Marine Group signed a memorandum of understanding to establish a strategic partnership in the construction, maintenance, repair, and overhaul of US Navy supply ships, as well as the modernization of shipyards and joint shipbuilding.

"Don't expect 'brotherhood' from the US"

According to South Korean experts, the cooperation between South Korea and the US in the shipbuilding sector touches upon South Korea's "core expertise", which to some extent shows the role of South Korea towards the US.

"I think Koreans will be very excited because it is the first time the US has said to South Korea, 'Hey, can you do something for us?'” Professor Lee Sin-hyung from the Department of Naval Architecture and Ocean Engineering at Seoul National University told The Washington Post.

However, he warned that it is still too early for Koreans to have "beautiful expectations" about the cooperation, "I don't know if this will be a 'jackpot' opportunity as people think."

Reuters analysis pointed out that there are still many legal and manufacturing obstacles in the shipbuilding cooperation between South Korea and the US, and a lot of work remains to be done.

Steve SK Jeong, head of naval vessels business at Hanwha Ocean, said: "I think the US shipbuilding industry has not faced much competition for a long time. Facilities are old, and there is a shortage of skilled workers."

A large ship under construction is moored at the Philadelphia Shipyard. Hanwha Group website

Some South Korean shipbuilding industry personnel told Reuters that training local workers could take 4-5 years, and it is difficult to find people willing to work in the harsh conditions of a shipyard.

At the same time, the procurement of components such as steel plates may also hinder the US from quickly advancing its goal of revitalizing its shipbuilding industry.

Trump said on the 25th that some US ships would temporarily be built in South Korea: "We will buy ships from South Korea, but we will also let them build ships here with our workers."

South Korean officials said that unless the US relaxes some trade protection policies, delivering full ships or modules for shipbuilding to US shipyards may be restricted.

Reuters pointed out that according to the Jones Act passed in 1920, goods transported between US ports must be carried by ships built, owned, and operated by Americans; the Burns-Johnson Amendment prohibits the construction of US Navy vessels in foreign shipyards, but the US president has the authority to exempt the provisions for national security reasons, and some US lawmakers have also proposed amendments to allow US allies to participate in shipbuilding.

Lee Jae-myung's national security advisor, Wei Seung-rok, admitted that there are still legal restrictions on US-South Korea shipbuilding cooperation, "We are conducting various studies, and through considering alternative solutions and improving systems, we are pushing for further cooperation."

NBC reported that after the "martial law incident" caused by former South Korean President Yoon Suk-yeol, leading to months of political turmoil in South Korea, this meeting between Lee Jae-myung and Trump is an important opportunity for Lee Jae-myung to secure South Korean interests with Trump.

Dr. Eun-ya Jo, assistant professor of political science at the College of William and Mary and director of the Asia Policy Lab, told NBC that shipbuilding cooperation is a "strategic and symbolic victory" for both South Korea and the US. She also pointed out that Lee Jae-myung is seeking to lock in favorable terms for South Korea in the trade agreement with the US, but the agreement is not yet finalized, and most of the content is unclear.

"I think he (Lee Jae-myung) wants the agreement to be solid and reliable, at least providing some predictability and stability to the economic relationship between the two countries," Jo said.

However, Park Jong-chan, president of Insight K, a South Korean think tank, told NBC on the 25th that Trump and Lee Jae-myung have completely different positions on political, economic, and foreign policy issues, which may make Lee Jae-myung's visit to the US challenging. "People should not expect a 'brotherhood' between President Lee Jae-myung and President Trump," Park said.

Original article: https://www.toutiao.com/article/7542845241590579748/

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