Key facts
- Officials from a U.S. House Appropriations subcommittee visited South Korean shipyards in July.
- The delegation toured facilities operated by Hanwha Ocean and HD Hyundai Heavy Industries.
- The visit focused on inspecting warship construction capabilities and potential U.S. investment.
- The U.S. Congress has recently revised language in defense appropriation bills concerning foreign shipbuilding.
Officials from a U.S. House Appropriations subcommittee conducted visits to shipyards operated by major South Korean shipbuilders Hanwha Ocean Co. and HD Hyundai Heavy Industries Co. in July. The delegation toured facilities in Geoje and Ulsan, inspecting capabilities for building various naval vessels, including frigates, submarines, destroyers, and offshore patrol vessels.
The U.S. officials reportedly showed interest in understanding the companies' shipbuilding capacities and their plans for investment within the United States. This visit is seen as a potential indicator of increased efforts by the U.S. Congress to foster shipbuilding cooperation with South Korea, aligning with an agreement previously reached by the leaders of the two allied nations.
Recent legislative actions in the U.S. may facilitate this cooperation. The U.S. House Appropriations Committee passed a revised Defense Appropriation bill for fiscal year 2027, which narrowed the scope of a ban on foreign construction of military vessels from "any vessels" to "covered ships," specifically those categorized as combat ships. Experts suggest this change could open avenues for constructing such vessels outside the U.S.
The visits also follow a request for information (RFI) sent by the U.S. Department of War and the U.S. Navy to South Korean shipbuilders regarding their combat and replenishment vessels. An RFI is a standard procedure in arms procurement for gathering details on supplier capabilities and cost estimates.