South Korea's Lee Joins Trump In Push To Revitalize US Shipbuilding— 'Facilities Are Old...There's A Shortage Of...'

South Korean President Lee Jae Myung has pledged to revitalize the U.S. shipbuilding industry during his official visit to the United States.

Trump, Lee Push for Stronger US–Korea Shipyard Ties

President Lee’s visit to the U.S. has been marked by his commitment to rejuvenating the American shipbuilding sector. He met with U.S. President Donald Trump on Monday, reported Reuters.

Lee’s visit also includes a trip to a shipyard owned by South Korea’s Hanwha Group, where he will highlight investment plans. Hanwha, which acquired the facility last year, aims to invest up to $5 billion to increase its output from less than two vessels a year to as many as 20.

Lee has expressed confidence in the Korean shipbuilding industry’s ability to revitalize the U.S. shipbuilding sector, potentially creating a new era of mutual prosperity. South Korean shipbuilders such as HD Hyundai and Samsung Heavy Industries have also announced plans to strengthen U.S. maritime capabilities through various partnerships and investments.

South Korean shipbuilders are ramping up their investments in the U.S. Hyundai Development Company, in partnership with the state-run Korea Development Bank and Cerberus Capital, has committed to establishing a multibillion-dollar joint fund aimed at strengthening the maritime capabilities of the U.S. and its allies.

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Palantir drives AI push in US shipbuilding

South Korea’s shipbuilding industry has been a global leader, with companies like Hyundai Heavy Industries Group collaborating with Palantir Technologies (NYSE:PLTR) to enhance AI-driven shipyard innovation and future defense capabilities. This was followed by a meeting between Palantir CEO Alex Karp and Hyundai Vice Chair to enhance AI shipyard, defense collaboration amid Trump’s call for U.S. shipbuilding revival.

Additionally, Palantir’s technology has been instrumental in modernizing the U.S. Navy’s shipbuilding efforts, further strengthening South Korea’s position as a key player in the global maritime industry.

Aging US Shipyards, Labor Gaps Hinder Revival Plans

This move by South Korea comes in the wake of the U.S. administration’s efforts to revitalize its shipbuilding industry and counter China’s maritime dominance. Earlier this year, President Trump was reported to be preparing an executive order to boost the U.S. shipbuilding industry and challenge China’s maritime dominance.

However, Steve SK Jeong, head of the Naval Ship Global Business at Hanwha Ocean stated, “I think the U.S. shipbuilding industry hasn’t had to compete very much. Facilities are old, and there’s a shortage of technicians.” It could take four to five years to train local workers, and finding people willing to take on the demanding work of shipyards remains a challenge, say industry experts.

Trump stated that a few U.S. ships would continue to be built in South Korea currently. “But we’re also going to have them make ships here with our people,” he added

Price Action: The stocks that could benefit from stronger U.S.-Korea shipbuilding ties in the long run are Huntington Ingalls Industries Inc. (NYSE:HII) and General Dynamics Corp. (NYSE:GD). On a year-to-date basis, Huntington Ingalls surged 44.3%, while General Dynamics climbed 22.56%, as per data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.