US Defense Secretary Pete Hegseth eyes March visit to Seoul

US Defense Secretary Pete Hegseth is arranging a visit to South Korea next month to inspect shipyards and discuss cooperation on naval vessel construction and maintenance services, according to South Korean government and defense industry sources on Wednesday.

If confirmed, Hegseth would be the first cabinet-level official from Donald Trump’s second administration to visit South Korea. One key topic he is expected to address is raising South Korea’s share of defense expenses.

A defense industry source said the defense secretary is scheduling his trip to Korea in March.

“We’re discussing Secretary Hegseth’s visit to Seoul. Nothing has been finalized, but he is highly likely to visit,” a government official told The Korea Economic Daily.

Hegseth is scheduled to hold a defense ministerial meeting with Japan in Tokyo later next month. His trip to Seoul would underscore Washington’s commitment to strengthening US-South Korea-Japan cooperation in the Indo-Pacific region, say defense analysts. 

He is expected to push for a significant increase in South Korea’s contribution to defense costs amid the political instability after President Yoon Suk Yeol was impeached in December following his ill-fated martial law decree.

Analysts say Washington could threaten to suspend joint US-South Korean military exercises as leverage in negotiations.

The US is seeking closer cooperation with South Korea’s shipbuilding industry to counterbalance Beijing’s rising naval power.

“An official close to President Trump visited local shipyards last year to assess their production capacity,” said another source from a South Korean shipbuilder.

Last year, Hanwha Ocean Co. secured two contracts for maintenance, repair and overhaul (MRO) from US naval vessels, becoming the first South Korean shipbuilder to provide MRO services for the US Navy.

In November, then-President-elect Donald Trump said that the two countries need close collaboration for the shipbuilding industry not only in exports but also in MROs.

“American shipbuilding needs South Korea’s help. I am well aware of Korea’s world-class warship and vessel-building capabilities,” Trump told Yoon in a phone call after winning the presidential election.

In December, Hanwha Ocean and Hanwha Systems Co. jointly acquired Philadelphia-based Philly Shipyard for $100 million to enter the US shipbuilding industry.

Chemicals-to-defense-focused Hanwha Group had also considered an acquisition of Australian shipbuilder Austal’s shipyard in the US, but the talks fell through.

HD Hyundai Heavy Industries Co., the world’s largest shipbuilder, is seeking to launch MRO services for the US Navy as well, said its Chief Executive Park Seung-yong last month.

However, it remains unclear whether Hegseth’s visit to Seoul will directly lead to new shipbuilding contracts.

A source at the American Chamber of Commerce in Korea (AMCHAM) said: “Conditions are not yet ripe for detailed discussions between the US and Korean shipbuilders.”

Currently, South Korea is not allowed to build ships for the US Navy due to a federal law that bans US warships from being built abroad.

Amendments to the law have been pending in Congress and industry observers said they would take considerable time to pass. 

The Trump administration has announced a plan to invest $1.075 trillion to build 364 new warships by 2054.

Around 25% of the US naval fleet has been commissioned since 2010. In comparison, about 70% of Chinese naval ships were launched since 2010.

According to the Center for Strategic and International Studies (CSIS), the Chinese Navy had 234 warships in 2023, surpassing the US Navy’s 219 vessels for the first time.

US’s shipbuilding and maintenance capabilities are also falling behind China. According to the US Navy’s own assessment, the country's annual shipbuilding output is around 100,000 tons, approximately 0.4% of China’s.

(Sangeun Lucia Lee contributed to this article from Washington)

Write to In-Yeop Kim at inside@hankyung.com

Yeonhee Kim edited this article.