SEOUL, March 25 (Yonhap) -- The United States has reaffirmed its commitment to collaborate with South Korea under the leadership of acting President Han Duck-soo, following Han's reinstatement after a contentious impeachment process. Han's office relayed that the message from the White House expresses confidence in the democratic resilience of the Republic of Korea (ROK) and its people. This aligns with recent events where South Korea's Constitutional Court dismissed the impeachment of Han after 87 days, which stemmed from allegations regarding his involvement in the declaration of martial law by suspended President Yoon Suk Yeol on December 3.
The Constitutional Court's decision on March 24 marks a significant moment in South Korea's political landscape, especially in light of ongoing political turbulence surrounding Yoon's administration. The impeachment had raised concerns about the stability of the government and the underlying democratic principles in the nation. With Han Duck-soo back in his position, the immediate focus shifts back to international relations and domestic governance, hinting at a pronounced need for stability as the country navigates its external and internal challenges.
On another front, the shipbuilding industry is emerging as a critical area for cooperation between the United States and South Korea, intensifying in the wake of current geopolitical dynamics. With the U.S. striving to bolster its maritime fleet and South Korea being a premier shipbuilder, the partnership comes as a natural synergy in the defense and commercial sectors. Ships are pivotal for international trade and security, underpinning necessary maritime connections.
According to industry analysts, the U.S. has shown significant demand for new vessels, yet its domestic shipbuilding capacity has waned over the decades. In contrast, South Korea has maintained a robust shipbuilding sector, seizing almost 18% of the global market share for large cargo ships as of 2023, while China dominates with nearly 70%.
Further emphasizing the importance of shipbuilding, recent statistics reveal that large ship orders in South Korea surged by over 40% in 2024. This trend signals heightened manufacturer capacity, driven partly by a backlog of orders and strategic interests from both the U.S. and South Korean governments to boost their maritime capabilities amid shifting global power dynamics.
Efforts from U.S. policymakers underline the urgency of enhancing domestic shipbuilding. In February 2025, Senators Mike Lee and John Curtis introduced bills aiming to expedite the construction of ships for the U.S. Navy and Coast Guard, highlighting the necessity to leverage alliances to remain at the forefront of maritime security. “Both bills are about leveraging our diplomatic relationships and the comparative advantages of our allies to ensure America remains at the forefront of maritime security,” Lee remarked.
The legislative action aligns with previous initiatives like the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2024 (SHIPS Act), which aims to fund direct ship manufacturing and improve construction facilities and workforce development within the U.S. This act has not yet passed but indicates the robust bipartisan support for revitalizing the U.S. shipbuilding industry.
In South Korea, the Ministry of Economy and Finance's recent 2025 Economic Policy Directions indicated a willingness to bolster its shipbuilding industry. Building on the K-Shipbuilding Super Gap Vision 2040 report, Korea is set to invest at least KRW 2 trillion (approximately USD 1.4 billion) in enhancing core technologies and the workforce within the sector over the next decade.
Despite the promising potential for collaboration, significant hurdles remain. Regulatory concerns, particularly related to the U.S. Merchant Marine Act of 1920, commonly known as the Jones Act, complicate the landscape. The act mandates that vessels operating in U.S. waters must be built in the United States, which can restrict foreign partnerships and escalate costs. As South Korea aims to play a crucial role in shipbuilding for the U.S., the implications of the Jones Act come under scrutiny, suggesting a need for flexibility in these regulations to facilitate foreign partnerships.
Moreover, labor shortages in the U.S. shipbuilding industry pose a further challenge. Reports indicate U.S. shipyards struggle to attract a qualified workforce, which contrasts with South Korea's proficiency in integrating automation and robotics to mitigate labor constraints. Former shipbuilding executive Craig Hooper remarked on the complexities involved, noting, “The complex rules are often breached, which makes integrated operations a challenge.”
Beyond these challenges, it remains crucial for the U.S. and South Korea to navigate their mutual maritime security interests with caution, especially in light of rising tensions with China and North Korea. Recent drafts from the U.S. Trade Representative have called for increased tariffs on Chinese-built ships in U.S. ports, reinforcing the necessity to solidify partnerships with allies like South Korea against the backdrop of strategic maritime considerations.
The urgency of shipbuilding cooperation between these two nations reflects their broader economic and security ties. With both countries looking to enhance their standings within the global maritime landscape, focused efforts to address regulatory, labor, and technological barriers will be essential. Both sides must coordinate effectively to maximize their collaborative potential in shipbuilding, ensuring that their alliance remains resilient against rising geopolitical challenges.
Terrence Matsuo is a Non-Resident Fellow at the Korea Economic Institute of America. The views expressed here are the author’s alone, and additional information is available at the Department of Justice, Washington, D.C.
