Competition heats up for Trump's shipyard visit during APEC summit

U.S. President Donald Trump, then-chairman of the Trump Organization, visits Daewoo Shipbuilding & Marine Engineering's (DSME) shipyard on Geoje Island, South Gyeongsang Province, in 1998 with his oldest son, Donald Trump Jr. The shipyard is now owned by Hanwha Ocean. Courtesy of DSME

The shipbuilding rivalry between HD Hyundai and Hanwha has spilled over into a competition to invite U.S. President Donald Trump to their shipyards during his likely visit to Korea for the APEC summit in late October in Gyeongju, North Gyeongsang Province.

Rep. Kim Tae-seon of the ruling Democratic Party of Korea recently urged the government to proactively organize visits to Korean companies for leaders of APEC member states. Kim represents Ulsan’s Dong District, home to the shipyard of HD Hyundai Heavy Industries (HHI).

“Those visits are necessary to show our technologies and vision to world leaders,” the lawmaker said during a National Assembly meeting Tuesday.

Citing a proposed U.S. Congress bill aimed at allowing overseas shipyards to build naval vessels for the U.S. Navy, Kim emphasized that the construction of U.S. naval ships in Ulsan could soon become a reality.

“Against this backdrop, their visits to HD HHI, the world’s largest shipyard, will provide an opportunity for Korea to strengthen diplomatic and economic partnerships with their nations,” he added.

Rep. Kim Tae-seon, front row second from right, of the ruling Democratic Party of Korea speaks during a meeting at the National Assembly in Seoul, Tuesday, to ask the government to organize visits to HD Hyundai Heavy Industries and other Korean companies for participants in the APEC summit. Courtesy of Kim's office

In a YouTube broadcast the following day, Kim directly mentioned Trump’s interest in Korea’s shipbuilding technologies and noted that Gyeongju is closer to HD HHI’s shipyard than to Hanwha Ocean’s facility on Geoje Island, South Gyeongsang Province.

As both HD Hyundai and Hanwha remain cautious about officially inviting the U.S. president, industry insiders are watching to see whether politicians from Geoje will enter the fray. Geoje Mayor Byeon Gwang-yong, also a member of the ruling party, may request central government support for a Trump visit to Hanwha’s shipyard.

In 1998, when Trump was active in real estate, he and his family visited the Geoje shipyard, which was then owned by Daewoo Shipbuilding & Marine Engineering (DSME). His current interest in Korea’s shipbuilding sector is partly attributed to that visit.

Considering his previous visit and Hanwha Ocean's participation in projects to maintain, repair and overhaul (MRO) U.S. naval vessels, its shipyard could be a more attractive destination for Trump. Last year, the shipbuilder secured two MRO contracts with the U.S. Navy. It also owns Philly Shipyard in Philadelphia and is seeking to acquire Australia’s Austal, which operates shipyards in Alabama and California.

However, HD HHI is also targeting U.S. MRO deals this year, following its partnership with Huntington Ingalls Industries, the largest military shipbuilder in the U.S.

When U.S. Navy Secretary John Phelan visited Korea in April, he toured the shipyards of both HD HHI and Hanwha Ocean. U.S. Trade Representative Jamieson Greer also met with senior executives from both companies during his trip to Jeju Island for the APEC trade ministers’ meeting last month.

Donald Trump Jr., the U.S. president’s eldest son, who accompanied his father to the DSME shipyard in 1998, did not visit either shipyard during his trip to Korea in April, although he met with Hanwha Group Vice Chairman Kim Dong-kwan and his two younger brothers in Seoul.