Del Toro Aims to Jumpstart U.S. Shipbuilding via Korea Investment

During a recent visit to Korea, U.S. Secretary of the Navy Carlos Del Toro engaged with leading executives from the shipbuilding industry, with the objective of encouraging Korean investments in both commercial and military shipbuilding ventures within the United States.

Secretary Del Toro's itinerary began in Seoul, where he held discussions with Hanwha's Vice Chairman and CEO, Dong Kwan Kim, and HD Hyundai's Vice Chairman and CEO, Kisun Chung. Chung provided Del Toro with a guided tour of Hyundai's Ulsan shipyard, followed by a visit to Geoje Island. There, Hyek-woong Kwon, CEO of Hanwha Ocean, showcased his company's shipbuilding operations.

Secretary Del Toro articulated a compelling proposition during these meetings: “In each of these engagements, I brought to the table a simple, yet profound opportunity: invest in America.” He expressed satisfaction with the keen interest from these leading shipbuilders to consider establishing subsidiaries and investing in shipyard operations in the U.S.

This initiative is part of Secretary Del Toro’s broader Maritime Statecraft strategy, aimed at bolstering the U.S.'s stature as a maritime power and addressing China's aggressive expansion in global shipbuilding. Introduced in September, this strategy calls for enhanced collaboration with shipbuilders, including those from allied nations like Japan and South Korea, and is in line with the Pentagon's National Defense Industrial Strategy, which seeks to invigorate the U.S. industrial base through innovation and venture capital.

Del Toro praised the exemplary standards of Hanwha and Hyundai in the global shipbuilding sector and discussed the opportunity to rejuvenate dormant shipyard sites in the U.S. for dual-purpose construction projects. This would support the transition to greener energy solutions and generate economic growth through job creation and the construction of strategically important vessels.

“In addition to our currently active shipyards, there are numerous former shipyard sites around the country which are largely intact and dormant,” Del Toro stated. “These are ripe for redevelopment as dual-use construction facilities for both warships, like AEGIS destroyers, as well as high value chain commercial vessels, such as the ammonia gas carriers that will enable the global transition from fossil fuels to green energy sources like hydrogen.”

Del Toro concluded by expressing his anticipation for further discussions with Chung and Kim at the Pentagon in the near future.