S Korea focusing on ships at tariff talks

TRADE DEFICIT

- JU-MIN PARK JOYCE LEE

South Korea and the United States have been discussing a shipbuilding tie-up that could include investments to modernise US shipyards and more help to repair the US naval fleet as Seoul seeks better tariff terms, government and industry sources said.

US President Donald Trump, who has made revitalising the ageing US shipbuilding industry a priority to keep up with China, has repeatedly raised the idea of cooperating with South Korea’s cutting-edge shipbuilding industry.

After investing billions of dollars in shipbuilding capacity, China is the world’s biggest shipbuilder. It also has the world’s largest maritime fighting force, operating 234 warships to the US Navy’s 219, according to the Center for Strategic and International Studies.

“South Korea can use shipbuilding as leverage to gain some advantage in tariff negotiations,” said Kim Suk Kyoon, a former commissioner of the Korea Coast Guard and an expert on maritime strategy.

Pressure on Seoul to reach a deal on import tariffs has increased after Japan struck a trade agreement with the US this week. South Korean officials are in Washington for trade talks, though a high-level meeting set for today was postponed over scheduling.

South Korea is the world’s second-largest shipbuilder and a source with direct knowledge of the talks said any partnership should include South Korean companies investing in the US and helping more in repair and maintenance.