South Korean Shipbuilders Eye U.S Navy Shipbuilding Contracts After Canada Submarine Setback

South Korean shipbuilders are gradually shifting their focus to the U.S naval market amidst growing cooperation between Seoul and Washington in the defence sector and the rising demand for warships fuelled by fears of a rapidly expanding Chinese naval fleet.

According to sources, the U.S. Department of Defence and the U.S. Navy contacted key shipbuilders in South Korea, asking for details about advanced ship construction as the U.S Navy plans to build combat ships and fleet replenishment vessels.

The development comes after both countries decided to boost bilateral cooperation in defence under the MASGA initiative.

HD Hyundai Heavy Industries and Hanwha Ocean sent details about their unique naval ship designs last month.

Samsung Heavy Industries also sent information for the navy’s medium-sized fleet oiler program.

This news comes a few days after Canada chose Germany’s thyssenkrupp Marine Systems over Hanwha Ocean for the Canadian Patrol Submarine Project, valued at 60 trillion won ($43 billion).

Analysts said Canada picked Germany because of its geopolitical and security ties within the North Atlantic Treaty Organisation.

The U.S. Navy wants to expand its fleet to 381 ships by 2054. This requires building roughly 364 new ships over the coming three decades.

The budget for this massive undertaking would be around $1.075 trillion through 2054, equivalent to roughly 1,600 trillion won.

On the other hand, China operates over 370 ships and submarines, with the fleet expected to grow to 435 by 2030.

South Korean shipbuilders could help the U.S in speeding up ship construction and delivery by eliminating issues like labour shortages and supply chain issues; however, legal hurdles remain as U.S law restricts the construction of naval assets overseas for security reasons.

Internal negotiations will be required to solve this issue.

After the G7 Summit 2026, President Lee Jae-myung said that U.S President Trump had asked whether South Korea could build 10 U.S. naval vessels, to which he responded that it was possible and that Seoul would make every effort.