Opening the Door to the U.S
Defense Market
From Next-Generation Auxiliary Shipbuilding
to MRO, the Beginning of a “Naval Alliance”

Next-Generation U.S. Navy Auxiliary Ships, Where Korean and U.S. Technologies Converge

In October, HD Hyundai Heavy Industries, the shipbuilding affiliate of HD Hyundai, signed a Memorandum of Agreement (MOA) on Cooperation in the Design and Construction of Commercial and Naval Vessels with HII in Gyeongju, the host city of APEC 2025.
HII is a cornerston of the U.S. defense shipbuilding industry, having constructed roughly two-thirds of the Aegis destroyers commissioned by the U.S. Navy, along with large amphibious vessels. At the center of the current cooperation is the U.S. Navy’s next-generation auxiliary ship program. These vessels serve as critical assets that supply fuel and materials to combat ships in operational theaters, and are expected to deliver significantly enhanced mobility and operational efficiency compared with existing replenishment ships. HD Hyundai Heavy Industries has already demonstrated its advanced capabilities through the successful delivery of auxiliary ships such as the Aotearoa for the Royal New Zealand Navy and Soyang class1 auxiliary ships for the Republic of Korea Navy. Through the MOA, the two companies agreed to jointly advance the design and construction of the U.S. Navy’s next-generation auxiliary ships, while also sharing expertise to reduce construction costs and shorten delivery timelines across both commercial and naval shipbuilding.
Under the agreement, the two companies agreed to review options for joint investment in acquiring or newly establishing shipbuilding production facilities in the United States. They also agreed that HD Hyundai would supply block modules and key materials to HII’s Newport News Shipbuilding and Ingalls Shipbuilding yards, while discussing the establishment of an engineering joint venture in the shipbuilding sector.
Eric Chewning, Vice President of HII, described the partnership as a pivotal moment in advancing shipbuilding cooperation between the United States and Korea, noting expectations that collaboration with HD Hyundai Heavy Industries, the governments of both countries, and customers would help modernize the foundation of the U.S. shipbuilding industry and enhance productivity.

Visit by the U.S. Secretary of the Navy, Capabilities Proven by “K-Aegis” Destroyers

As the strategic importance of Korea-U.S. cooperation continues to grow, high-level exchanges have followed. In May 2025, U.S. Secretary of the Navy John Phelan visited Korea and toured HD Hyundai Heavy Industries’ headquarters in Ulsan, where he met with HD Hyundai Chairman Chung Ki-sun to discuss avenues for bilateral cooperation in shipbuilding.
During the visit, Secretary Phelan boarded the Jeongjo the Great, the lead ship of Korea’s next-generation Aegis destroyers delivered by HD Hyundai Heavy Industries in 2024, to review its performance. He also inspected the construction site of the second ship, Dasan Jeong Yak-yong, which was nearing launch at the time. Commenting on the visit, the Secretary stated that cooperation with a shipyard possessing such advanced capabilities would enable U.S. Navy vessels to achieve the highest levels of performance. These remarks underscored that HD Hyundai Heavy Industries has demonstrated its ability to meet the U.S. Navy’s stringent technical and performance standards.

Strategic Partnership to Secure Production Bases and Build Digital Shipyards

The cooperation between the two companies extends beyond naval vessel construction to drive structural innovation across the shipbuilding industry. At the Sea-Air-Space Exposition (SAS 2025) held in Washington, D.C. last April, HD Hyundai Heavy Industries signed an MOU on enhancing ship productivity and cooperation in advanced shipbuilding technologies with HII. In particular, the plan calls for the integration of HD Hyundai Heavy Industries’ strengths in process automation, robotics, and AI to develop digital shipyards, with the goal of significantly improving productivity across the U.S. shipbuilding industry. If these initiatives materialize, strong synergies are expected to emerge from the combination of the competitiveness of the U.S. defense market and Korea’s advanced manufacturing capabilities.
Won-ho Joo, President of HD Hyundai Heavy Industries and Head of the Naval and Medium-Size Shipbuilding Business Unit, expressed confidence that cooperation between leading shipbuilders from Korea and the United States would make a meaningful contribution to the strengthening of bilateral security.