Seoul, May 19 South Korea should establish a detailed "win-win" strategy to seize business opportunities amid the United States' push to revitalise its shipbuilding industry, a local business lobby said on Monday.
The recommendation follows a recent meeting between U.S. Trade Representative Jamieson Greer and top executives from major Korean shipbuilders HD Hyundai and Hanwha Ocean Co. to discuss cooperation in shipbuilding, reports Yonhap news agency.
"The Korean government and shipbuilding companies need to present sector-specific proposals aligned with the U.S. government's plans to build new vessels, in order to create mutually beneficial synergies," the Federation of Korean Industries (FKI) said, citing a new report.
According to the report, the U.S. is expected to place orders for between 403 and 448 vessels by 2037, including commercial ships, liquefied natural gas (LNG) carriers and naval ships.
The projected orders include 100 commercial vessels, 42 to 65 LNG carriers, 10 icebreakers, 129 combat ships and 67 vessels for the National Defense Reserve Fleet.
The number of U.S. vessel orders is likely to increase further as the country aims to expand its commercial fleet to 250 ships under the SHIPS for America Act, proposed in April. The act also mandates that by 2047, 15 percent of outbound U.S. LNG shipments must be transported on domestically built vessels.
Additionally, the U.S. Navy recently announced plans to procure 364 new ships over the next 30 years. In January, U.S. President Donald Trump pledged that the U.S. would order 40 large icebreakers.
"Korean shipbuilders should engage in close consultations with the U.S. government when participating in local shipbuilding projects and ensure consistent support from U.S. authorities," Professor Ryu Min-chul of Korea Maritime and Ocean University said in the report titled "Analysis of the U.S. Shipbuilding Industry and Implications for Korea–U.S. Cooperation."
Ryu also warned that Korean companies must be mindful of potential business risks stemming from possible changes in U.S. shipbuilding policies.
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