Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
China remains obstacle to US Navy ship maintenance at Gunsan yard
HD Hyundai Heavy Industries' dockyard in Gunsan, North Jeolla Province / Courtesy of HD Hyundai
By Park Jae-hyuk
Civic groups warn of military clash near southwest coast of Korean Peninsula
Debate is intensifying over a proposal to redesign HD Hyundai Heavy Industries’ (HHI) dockyard in Gunsan, North Jeolla Province, as a dedicated site for the maintenance, repair and overhaul (MRO) of U.S. Navy vessels.
This follows speculation that Seoul presented the idea during tariff negotiations with Washington.
While many residents of the southwestern port city are pinning hopes on the MRO project to help revive the local economy, concerns are mounting about potential threats from China, which lies just 190 kilometers from the dockyard.
Since 2017, HD HHI has not constructed new ships at its Gunsan dockyard. Instead, the facility has produced shipbuilding blocks that are shipped to the company’s main yard in Ulsan.
The loss of new shipbuilding has added to Gunsan’s economic difficulties, which were further compounded by the closure of a General Motors plant in 2018.
Residents in Gunsan have repeatedly called for converting the city’s dockyard into an MRO-exclusive facility for the U.S. Navy, in line with the Donald Trump administration’s push for allies to help counter China’s maritime expansion.
Korean trade negotiators’ proposal of shipbuilding cooperation in an effort to persuade the U.S. to reduce tariffs has fueled further optimism about transforming the dockyard.
“While HD HHI said such discussion at the government-to-government level cannot be confirmed by the management at this state, we believe the reopening of Gunsan dockyard was already in place before South Korea’s recent presidential election,” BofA Global Research said in a recent report.
Some Korean securities analysts, however, caution that the dockyard’s proximity to mainland China poses risks.
“Considering the fact that the dockyard is within the range of short- and medium-range ballistic missiles from Chinese missile units in Shandong and Henan provinces, questions remain over the plan, despite its strategic value,” SK Securities analyst Han Seung-han said.
Progressive civic groups in North Jeolla Province and the minor opposition Justice Party have voiced strong opposition to the proposed MRO facility.
“This will expand the U.S. military bases targeting China, heightening the risk of war on the Korean Peninsula,” the Justice Party’s North Jeolla Province office said in a statement Tuesday.