Hyundai is preparing to enter the US market: how US shipyards may end up under the control of South Korea
18 September 2025 17:16
South Korea’s HD Hyundai, the world’s largest shipbuilder by orders, is negotiating with several companies to buy a shipyard in the United States.
This was announced by Woo Man-jong, Head of Planning and Management of Naval and Special Ships of the corporation, in an interview with Reuters, "Komersant Ukrainian" reports.
The company’s goal is to create its own production base in the United States and increase revenues from the construction of warships for the US Navy to 3 trillion won ($2.2 billion) a year by 2035.
Why it matters
According to Jong, the US is facing an “inevitable need” to open up the shipbuilding market to foreign partners. There are two reasons for this:
- the growing gap in naval capabilities between the US and China;
- insufficient capacity of American shipyards.
Washington, according to Hyundai, will have to rely on the infrastructure of its allies to overcome the shortage of ships in the coming years.
What problems will Hyundai face?
- Staff shortage. American shipyards suffer from a shortage of skilled workers and high staff turnover. The company estimates that it can take 3 to 5 years to train workers.
- Migration policy. Korean instructors have already faced difficulties: hundreds of workers were detained at Hyundai Motor’s plant in Georgia. Therefore, the company is calling on Washington to ease visa rules.
- Legislative barriers. The Jones Act and the Barnes-Tollefson Amendment limit the ability of foreign firms to build ships for the United States. The Congress is considering possible changes, but it is unlikely that these acts will be completely repealed.
Hyundai’s response
Despite all the risks, the company considers the US market to be the most attractive in the field of military shipbuilding. “If you want to do business with the US, you need to do it in the US,” Jong emphasized.
Hyundai relies on its experience in Peru, where the company has already managed to establish a production base, train employees and increase productivity.
Beck: global competition in naval shipbuilding
The American naval ship market is already becoming an arena of global competition. Recently, the German concern Rheinmetall announced the acquisition of the military division of the Lürssen Group shipbuilding company. Experts believe that the US’s western allies are seeking to integrate into Washington’s military-industrial complex in order to gain access to its contracts and at the same time strengthen their own defense positions.
What’s next
If the Hyundai deal goes through, it will be the first time a South Korean shipyard has been established in the United States. Analysts suggest that this could change the balance of power in global shipbuilding and signal Washington’s willingness to cooperate more openly with allies in the field of defense technology.
