Trump considers Korean companies for U.S. naval buildup

U.S. President Donald Trump signaled a bigger role for Korean shipbuilders on Wednesday as he pushed to bolster U.S. naval power.

“We are [going to] probably look at some of these companies coming in from South Korea and other places, and they are working with us on ships,” Trump said during the Pennsylvania Defense and Innovation Summit at the U.S. Army War College in Pennsylvania.

“We will also buy some ships made outside of the area. We need a lot of ships for our Navy. […] Our ships are getting older, and we really got out of the business,” Trump added.

It remains unclear whether Trump's reference to "ships made outside the area" meant vessels constructed outside the United States.

However, the remarks have prompted speculation that he may have been referring to the possibility of building U.S. warships overseas.

The interpretation stems from Trump's reported comment to Korean President Lee Jae Myung at the Group of 7 summit held last month, when he asked whether Seoul could quickly build 10 warships for Washington.

Washington has seemingly stepped up efforts to assess the shipbuilding capabilities of Korean shipyards. The U.S. Department of Defense and the Navy recently sent requests for information (RFIs) to Korean shipbuilders seeking details on their ability to design and build combat vessels and fleet replenishment oilers.

HD Hyundai Heavy Industries and Hanwha Ocean responded to the RFI on combat ship design and construction, while Samsung Heavy Industries joined the two shipbuilders in responding to the RFI for medium-sized replenishment oilers, according to industry sources.

For the United States to procure ships built in Korea or elsewhere overseas, it would first have to overcome the Byrnes-Tollefson Amendment, which generally prohibits U.S. Navy vessels from being built at foreign shipyards.

The Korean government and the country's shipbuilding industry hope President Trump will use his executive authority as much as possible to allow U.S. naval vessels to be built in Korea.

Korea is committed to investing $350 billion in the United States, including $150 billion earmarked for a bilateral shipbuilding initiative dubbed MASGA, short for "Make American Shipbuilding Great Again."

On July 23, the two countries are set to open the Korea-U.S. Shipbuilding Partnership Center, which will serve as an operational hub supporting the partnership.

Michael Coulter, CEO of Hanwha Defense USA, also attended Wednesday's event alongside executives from U.S. defense and investment firms.

"Our shipyard in Korea puts out about one ship a week,” Coulter said in front of Trump. “We have a plan to bring that capability to Philadelphia. […] It’s going to be the home to Make American Shipbuilding Great Again.”

Also attending the event were Defense Secretary Pete Hegseth, Chairman of the Joint Chiefs of Staff Gen. Dan Caine, JPMorgan Chase CEO Jamie Dimon, Lockheed Martin CEO Jim Taiclet and Boeing CEO Kelly Ortberg.

Update, July 16: More information about Washington's interest in Korean shipyards added.

BY JEONG HYE-JEONG,  KIM HYOUNG-GU [lee.soojung1@joongang.co.kr]