ROK-U.S. Alliance Evolves to Strengthen Industrial Partnership

OPINION:

• Hanwha Ocean provides MRO services on U.S. Navy vessels, supporting the U.S. defense
  posture in the Indo-Pacific region, through the acquisition of Philly Shipyard.
• Hanwha Defense USA seeks to support the U.S. Army’s artillery modernization effort for increased range and rate of fire.
• Hanwha wins the ‘Korea-U.S. Alliance Award’ for contributions to the ROK-U.S. alliance.

The U.S.-South Korea alliance has served as a critical deterrent against North Korean aggression for the past seven decades. This longstanding military partnership is evolving toward strengthening industrial defense collaboration by capitalizing on South Korea’s industrial prowess, defense innovation, and the strategic advantages its geography brings.

Critical to the US National Defense Strategy (NDS) is the ability to project power throughout the world and sustain combat operations in all spheres of influence. Maintaining maritime dominance is central to the NDS and relies upon a strong, scalable, and adaptable shipbuilding industry. However, the US finds its shipbuilding industry under capacity suffering from insufficient investment, scarcity of skilled labor, and fragile supply chains. While acquisition practices and the lack of stable demand signals play a part, the resulting project delays plaguing nearly every major yard and the cost overruns across most major programs cannot be overlooked.

As the U.S. Navy works to these challenges, Hanwha made a new investment in Philly Shipyard, which will be playing a leading role in the fight. In June 2024, Hanwha Systems and Hanwha Ocean, key affiliates of Hanwha Group, announced the acquisition of the Philadelphia-based shipyard with a $100 million investment. Since then, Hanwha Ocean has clinched two MRO (Maintenance, Repair and Overhaul) contracts from the U.S. Navy.

Under the first contract secured in August, Hanwha Ocean will overhaul a 40,000-ton U.S. Navy dry cargo and ammunition ship at its Geoje shipyard. With this contract, Hanwha Ocean has entered the U.S. Navy ship MRO business, marking a significant entry into this critical segment of the global maritime defense market.

A second deal was sealed in November for MRO services on the U.S. Navy’s 31,000-ton replenishment vessel, USNS Yukon, which supports the U.S. 7th Fleet. Under the second contract, Hanwha Ocean will conduct extensive maintenance and repairs on the USNS Yukon, aiming to complete the work and return the vessel by April 2025.

“Based on our world-class MRO technologies, we will deliver the vessels in a timely manner and contribute to the U.S. Navy’s naval power buildup,” D.S. Kim, Hanwha Ocean’s Vice President said.

With Philly Shipyard as a base, Hanwha is looking to expand its defense portfolio by constructing warships in the U.S. to meet the U.S. Navy’s requirements, solidifying Hanwha’s footprint in supporting the U.S.-ROK defense posture.

Collaboration on Artillery Capability

South Korea also aims to support the U.S. Army’s artillery modernization endeavors. In October, the U.S. Army announced the award of five contracts for the service’s Self-Propelled Howitzer Performance Demonstration. Hanwha Defense USA (U.S. defense subsidiary of Hanwha Aerospace) was announced as a selected vendor.

The Self-Propelled Howitzer Modernization (SPH-M), formerly known as Extended Range Cannon Artillery (ERCA), is crucial to improving the U.S. Army’s artillery capability by addressing three operational deficits:  survivability, range, and capacity. In November, at locations throughout the Korean Peninsula, Hanwha (supported by Korean Army volunteers) demonstrated its best-in-class range, highest available rate-of-fire, largest ammunition magazine, boasting compatibility with US munitions, and showcasing the mature technologies that underpin its high mobility, survivability, reliability, supportability, and lethality.

Nicknamed “Thunder,” the K9 SPH is the world’s most ubiquitous self-propelled artillery system, ordered by 10 countries, including six NATO member states: Poland, Finland, Norway, Estonia, Romania, and Turkey. Over 1,800 K9 systems are in active operation, accounting for nearly 60% of the global SPH market.

The K9 can deliver precise, accurate, and rapid effects at ranges of more than 50 kilometers. Optimized for “shoot-and-sprint” operations, the K9 is capable of firing multiple rounds and immediately relocating to avoid counter-fire.

Prior to November, the K9 SPH demonstrated its interoperability with U.S. ammunition and rocket-assisted projectiles at the U.S. Army’s Yuma Proving Ground (YPG). In the 2024 YPG demo, the K9 test-fired the Raytheon M982A1 Excalibur Precision-Guided Extended Range 155mm Artillery Projectile. During the test, the K9 successfully fired Excalibur IB projectiles, engaging a target nearly 50 kilometers away and becoming one of the few artillery systems proven to operate with some of the world’s most sophisticated guided munitions.

“We are focused on providing low-risk, long-range artillery capability, enhancing human effectiveness through manned and unmanned teaming solutions, and finding ways to ‘innovate at the round’ to address deficits in range, capacity, and survivability of current systems,” said Mike Smith, President and CEO of HDUSA.

Future Alliance on Industrial Partnerships

Former commanding generals of the U.S. Forces Korea (USFK) saw that South Korea’s artillery technology and manufacturing capacity could provide vital support to the U.S. Army’s modernization aspirations.

“All of the vehicles and equipment [of Hanwha] are absolutely top-rated, and I believe that the United States and the Republic of Korea would greatly benefit from partnering together and having these vehicles as part of our fleet,” said retired Army Gen. Walter Sharp, who served as USFK commander from 2008 to 2011.

Hanwha has also engaged in joint R&D efforts with the U.S. Army. In August, HDUSA signed a Cooperative Research and Development Agreement (CRADA) with the U.S. Army Combat Capabilities Development Command (DEVCOM) to cover a wide range of technologies from unmanned to combat vehicles, munitions, and energetics development.

“These joint efforts are critical to the learning process and help shrink the time it takes for new and improved systems and munitions to reach warfighters in the field,” a Hanwha spokesperson said. “Hanwha’s global experience and production capacity can provide immediate assistance as the Army continues its efforts to restock and modernize its current capabilities.”

Korea-U.S. Alliance Award

Hanwha Group has been awarded the ROK-U.S. Alliance Award by the Korea Defense Veterans Association (KDVA) and Korea-US Alliance Foundation (KUSAF). The award honored Hanwha’s dedication and commitment to enhancing security and economic cooperation between South Korea and the United States.

“The ROK-U.S. alliance is the cornerstone of South Korea’s security and economic growth,” said Son Jae-il, President and CEO of Hanwha Aerospace, during the Oct. 30 award ceremony at the Westin Chosun Hotel in Seoul. “Hanwha is dedicated to sharing the responsibility of safeguarding our mutual interests and supporting security readiness for both nations.”