Korean arms procurement agency chief says Trump 2.0 could be good news for shipbuilders
Published: 27 Nov. 2024, 15:13
![Defense Acquisition Program Administration (DAPA) Minister Seok Jong-gun speaks at a defense exhibition in Paris. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2024/11/27/20350f5e-b956-4dd5-841a-1aeeda57f0c3.jpg)
Defense Acquisition Program Administration (DAPA) Minister Seok Jong-gun speaks at a defense exhibition in Paris. [YONHAP]
Defense Acquisition Program Administration (DAPA) Minister Seok Jong-gun made the assessment amid upbeat prospects for shipbuilders here, after Trump called for more bilateral cooperation in the shipbuilding industry, especially in the MRO sector, during his phone conversation with President Yoon Suk Yeol.
The news raised expectations of greater U.S. business opportunities for South Korean shipyards, which has made a turnaround after years of an industry slowdown.
"The size of the naval MRO sector itself is big, and if this expands to shipbuilding, it would be a completely new market. There are high chances of the market expanding," Seok told a group of reporters in a meeting at a DAPA office in Gwacheon, south of Seoul, on Tuesday.
Seok mentioned possible opportunities for weapons systems, noting that Korea's 2.75-inch guided rockets have received favorable reviews, referring to LIG Nex1's Bigung, which passed the U.S. Foreign Comparative Testing conducted in Hawaii in July.
The DAPA chief also raised prospects for more arms exports outside of the United States should Trump push nations to do more to bolster their own defense.
"If Trump calls on nations to take care of their defense on their own, more weapons would be needed," Seok said. "Our weapons systems, which in large part are verified, could fill that role."
Seok, however, noted that new policies by the Trump administration that could potentially mandate defense firms to have U.S.-based manufacturing facilities could be a downside that may lead to financial losses in the event of an administration change.
On overall exports, a DAPA official who also attended the meeting said it may be "challenging" for South Korea to meet this year's annual export goal of $20 billion but said the country is still on course to become the world's fourth-largest defense exporter by 2027.
Speaking on a 7.8 trillion-won ($5.6 billion) naval destroyer project that has been in limbo amid a legal feud between two contending local shipbuilders, Seok said DAPA will push to proceed with the project early next year to prevent a delay in delivery.
"Although it is delayed, the delivery period requested by the military should be met through all means," he said.
Korean shipbuilders HD Hyundai Heavy Industries and Hanwha Ocean have been embroiled in a fight over the bid after employees at HD Hyundai, which completed the basic design for the next-generation Aegis destroyer, were convicted of acquiring military secrets on the project.
The two shipbuilders recently dropped a defamation lawsuit and police complaint that they had filed against each other amid calls within the shipbuilding community to unite in the face of global market uncertainties.
Yonhap
with the Korea JoongAng Daily
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