Korea seeks to expand US naval cooperation from MRO to shipbuilding

Korea is seeking to expand its naval cooperation with the United States beyond maintenance, repair and overhaul (MRO) to the construction of U.S. support and combat vessels, as Washington looks to its allies to help ease constraints in its shipbuilding capacity.

Korean shipbuilders have won 12 U.S. Navy MRO contracts since 2024, including five this year, according to Kim Il-dong, vice minister of the Defense Acquisition Program Administration (DAPA). But Kim said the significance of those contracts goes beyond the number of vessels serviced.

“MRO is not an end in itself, but a gateway to broader cooperation,” Kim said during a policy seminar on Korea-U.S. defense industrial cooperation at the National Assembly, Wednesday. “The two countries should work to build on the experience gained through MRO and extend it to combat vessel maintenance and, eventually, shipbuilding."

Kim said Korean shipyards have been learning U.S. Navy procedures as well as its quality and security requirements through MRO projects, giving them experience that could pave the way for more complex work.

The push comes as the U.S. struggles to expand its fleet amid constraints in its domestic shipbuilding industry. Kim said aging shipyards, labor shortages and a weakened supply chain have made it difficult for the U.S. to increase production capacity quickly, prompting Washington to look to allies like Korea while rebuilding its own industrial base.

One possible approach is the so-called “Finland model,” which Kim said was included in a U.S. presidential memorandum issued in August. It called for examining new acquisition approaches for up to three types of vessels, including surface combatants, oilers and strategic sealift ships.

In the Finland model, vessels could initially be built overseas to speed up procurement, with production methods and technology then transferred to the U.S. for follow-on construction.

“The memorandum does not mean that a specific program or overseas construction project has been decided,” Kim said. “What is significant is that it has opened a new acquisition approach linking overseas construction with the rebuilding of the U.S. industrial base.”

DAPA is watching three areas in particular.

Kim said Korea is preparing for possible cooperation on surface combatant ships based on its experience designing and building the Chungnam-class frigate. Support vessels could offer a more immediate opportunity, as funding related to overseas construction of strategic sealift ships and oilers has been included in both the U.S. administration’s budget proposal and congressional discussions.

Combat vessels face greater hurdles, however, with Congress remaining cautious about allowing warships to be built overseas.

Another potential area for cooperation is the U.S. Navy’s Next Generation Logistics Ship (NGLS) program. Hanwha Ocean and Samsung Heavy Industries are participating with U.S. companies in concept design work, with the possibility of cooperation extending to detailed design and construction, according to Kim.

The effort is part of a broader push to shift bilateral defense cooperation from Korea’s purchase of U.S. weapons toward joint development, production and sustainment.

“It is time to think about what Korea and the U.S. can build together,” Rep. Yu Yong-weon of the People Power Party, who co-hosted the seminar, said in his opening remarks. “There are many areas where the two countries can work together, from joint production to MRO, follow-on logistics support and supply chains.”

Yu said procurement rules, export controls and technology security remain obstacles that need to be addressed.

“Developing together, producing together and sustaining together can become another pillar that makes the Korea-U.S. alliance stronger,” he said.

James Kim, chairman and CEO of the American Chamber of Commerce in Korea, also called for deeper industrial ties.

“We have an opportunity to move this partnership to the next level through greater co-development and co-production, co-sustainment and a deeper integration of our defense industrial bases,” Kim said.

He noted that such cooperation will require policy and institutional frameworks that support long-term investment, strengthen supply chain resilience and provide greater predictability across procurement cycles.