Shortly after concluding a phone call with South Korea’s acting President Han Duck-soo on Apr. 8, U.S. President Donald Trump took to Truth Social to highlight “one-stop shopping,” referencing cooperation in the shipbuilding sector, large-scale purchases of U.S.-produced liquefied natural gas (LNG), and joint investment in an Alaskan gas pipeline project. The move was seen as unusual for Trump, who had typically demanded that other countries put forward their own “cards” to negotiate lower tariffs—this time, he was the one offering proposals.
Attention is now turning to whether South Korea, home to one of the world’s most competitive shipbuilding industries and one of the top three LNG importers alongside China and Japan, could play a role in reducing the mutual tariff rate on LNG, which currently stands at around 25%. Arriving in the United States on the same day, Jeong In-kyo, head of the Trade Negotiations Office at the Ministry of Trade, Industry and Energy, said, “We are competitive in areas such as shipbuilding and LNG infrastructure construction, so we plan to bring those topics to the negotiating table.”
In shipbuilding, the urgency appears to lie on the American side. With China’s growing naval capabilities posing a challenge to the U.S. Navy, the U.S. is increasingly in need of shipbuilding and maintenance support and is reaching out to South Korean shipyards. The U.S. Navy plans to invest $1.075 trillion over the next 30 years to acquire 364 vessels and is even moving to revise related laws—unchanged in six decades—to allow allies to build its warships.
South Korean shipbuilders are also looking to expand their presence in the U.S. market. On Apr. 7, HD Hyundai Heavy Industries (HD HHI) signed an agreement with Huntington Ingalls Industries, the largest military shipyard in the U.S., to collaborate on production automation, robotics, artificial intelligence (AI) implementation, and workforce training. Hanwha Ocean, which acquired the Philly Shipyard in Philadelphia last June, plans to obtain certification for military shipbuilding by next year and enter the U.S. market for special-purpose vessels. “Although China and the U.S. were our top export destinations last year, we exported few ships to either country,” said a source from the shipbuilding industry. “This partnership could provide an opening into the U.S. market.”
However, the Alaskan LNG project presents more challenges. While Trump has repeatedly emphasized the project and Taiwan has already expressed interest in large-scale purchases, many in South Korea believe the country may have little choice but to respond positively to U.S. demands. At the same time, there are growing calls to negotiate tariff reductions in return. Appearing before the National Assembly on Apr. 9, Minister of Trade, Industry and Energy Ahn Duk-geun said, “We need to consult with the U.S. to determine whether the LNG project is commercially viable and how cooperation can take shape,” indicating a cautious approach.
Despite a short shipping period of just nine to eleven days, which is seen as an advantage of Alaskan LNG, skepticism remains over the project’s overall feasibility. There is concern that committing to large-scale LNG purchases or participation in the 1,300-kilometer pipeline project may be premature. The Korea Gas Corporation, a state-owned enterprise, is facing financial strain, making it difficult to secure funding for a project with an estimated cost of $44 billion.
