The trip is set to follow U.S.-Japan defense ministerial talks in late March, positioning Hegseth as the first cabinet-level official from the second Trump administration to visit South Korea.
“Secretary Hegseth's team has contacted Korean shipbuilders, including Hanwha Ocean,” an industry source said. A government source confirmed the visit was "highly likely" but had yet to be finalized.
The discussions come as the Trump administration pursues an ambitious initiative to expand American naval power. The U.S. aims to build 364 new warships by 2054, a project estimated to cost $1.075 trillion, as it seeks to counter China’s rapidly growing maritime capabilities.
A recent analysis by the Center for Strategic and International Studies (CSIS) found that China surpassed the United States in total fleet size in 2023, boasting 234 vessels compared to the U.S. Navy’s 219. While American warships maintain qualitative superiority, the numerical disparity continues to widen.
The U.S. shipbuilding industry has seen a significant decline. According to U.S. Navy assessments, domestic ship production accounts for just 0.4 percent of China’s annual output. In 2023, China controlled roughly 60 percent of global shipbuilding orders, while the U.S. claimed a mere 0.13 percent of the global market in 2024.
Washington has increasingly turned to allies with robust shipbuilding capabilities. Shortly after his election victory, U.S. President Trump emphasized the importance of naval cooperation with South Korea during a call with President Yoon Suk Yeol, stating, “We need to closely cooperate with Korea not only in ship exports but also in maintenance, repair, and operations.”
Hanwha Ocean, which recently acquired Philadelphia Shipyard with Hanwha Systems, is emerging as a key partner in these efforts. The firm’s success in securing two maintenance, repair, and operations (MRO) contracts with the U.S. Navy in 2024 has heightened interest in its role.
Meanwhile, HD Hyundai Heavy Industries is reportedly exploring investment opportunities in the United States, following its 2022 entry into the MRO sector through work with the Philippine Navy.
In addition to shipbuilding, defense cost-sharing is expected to be a central topic in Hegseth’s meetings, with Washington potentially seeking an increased financial contribution from Seoul toward maintaining U.S. forces on the Korean Peninsula.
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