The Korea-U.S. alliance should move beyond its traditional military framework and develop into a broader economic and maritime partnership, according to a recent vision laid out by Rep. Lee Un-ju of the ruling Democratic Party of Korea (DPK).

In an interview with The Korea Times, she emphasized the need to link naval cooperation with efforts to reinforce Korea’s industrial resilience.

“The Korea-U.S. alliance must expand beyond military defense to include shipbuilding, defense industries and maritime cooperation,” she said. “But none of that will work if we don’t have the manufacturing base to support it.”

The shift reflects a growing recognition that national security in the 21st century is no longer defined solely by troop levels, but also by economic resilience and industrial capacity. By linking military cooperation to the revitalization of strategic industries, the proposal seeks to strengthen the alliance while bolstering Korea’s ability to sustain advanced defense capabilities and drive long-term economic growth.

The strategy she outlined rests on three pillars: a bilateral agreement with the U.S. Navy to service warships in Korea, a legislative initiative aimed at safeguarding Korea’s industrial base, and a 1,000-page growth blueprint intended to chart its next phase of development. A three-term lawmaker and one of her party’s leading voices on economic policy, Lee emphasized that the strength of the U.S.-Korea alliance must ultimately be grounded in the Asian country’s domestic capabilities.

“You can’t talk about long-term cooperation if you’ve lost your design capacity, engineering workforce, certification labs and factories,” she said.

Ready to repair US warships

At the center of her proposal is Korea’s world-class shipbuilding industry, anchored in the southeastern cities of Busan, Ulsan, Geoje, and across South Gyeongsang Province. Lee argued that these shipyards are uniquely equipped to support U.S. naval maintenance, particularly as the Pentagon faces growing delays tied to labor shortages and legal restrictions, including the Jones Act.

Rep. Lee Un-ju seeks to combat industrial ‘hollowing out’ with new revitalization bill

The Korea-U.S. alliance should move beyond its traditional military framework and develop into a broader economic and maritime partnership, according to a recent vision laid out by Rep. Lee Un-ju of the ruling Democratic Party of Korea (DPK).

In an interview with The Korea Times, she emphasized the need to link naval cooperation with efforts to reinforce Korea’s industrial resilience.

“The Korea-U.S. alliance must expand beyond military defense to include shipbuilding, defense industries and maritime cooperation,” she said. “But none of that will work if we don’t have the manufacturing base to support it.”

The shift reflects a growing recognition that national security in the 21st century is no longer defined solely by troop levels, but also by economic resilience and industrial capacity. By linking military cooperation to the revitalization of strategic industries, the proposal seeks to strengthen the alliance while bolstering Korea’s ability to sustain advanced defense capabilities and drive long-term economic growth.

The strategy she outlined rests on three pillars: a bilateral agreement with the U.S. Navy to service warships in Korea, a legislative initiative aimed at safeguarding Korea’s industrial base, and a 1,000-page growth blueprint intended to chart its next phase of development. A three-term lawmaker and one of her party’s leading voices on economic policy, Lee emphasized that the strength of the U.S.-Korea alliance must ultimately be grounded in the Asian country’s domestic capabilities.

“You can’t talk about long-term cooperation if you’ve lost your design capacity, engineering workforce, certification labs and factories,” she said.

Ready to repair US warships

At the center of her proposal is Korea’s world-class shipbuilding industry, anchored in the southeastern cities of Busan, Ulsan, Geoje, and across South Gyeongsang Province. Lee argued that these shipyards are uniquely equipped to support U.S. naval maintenance, particularly as the Pentagon faces growing delays tied to labor shortages and legal restrictions, including the Jones Act.

The Jones Act, a century-old U.S. maritime law, restricts foreign-built and foreign-operated vessels from transporting goods between American ports and places limits on overseas maintenance of U.S. military ships.

“The U.S. Navy has faced maintenance bottlenecks, with limited capacity and manpower,” said Lee. “Meanwhile, Korea has the engineers and the shipyards — what we lack is a security framework to make it happen.”

To overcome this, Lee proposes a new administrative agreement modeled on the Status of Forces Agreement (SOFA), which would enable the designation of secure repair zones in Korea.

“If we can establish secure zones through a special administrative agreement, there’s room for flexibility,” she said.

For Lee, however, the opportunity to strengthen the alliance hinges on one crucial condition: protecting Korea’s manufacturing base.

“Technology, experts and production capacity must remain in the country,” she said. “Without a domestic ecosystem, even the strongest alliance won’t be sustainable.”

Industry’s role in alliance

Speaking at The Korea Times-AMCHAM Forum on “Strategic Proposals for the Korea-U.S. Partnership,” which was held on June 24, Lee emphasized that Korea’s strategic industries are crucial to national security, especially given the country’s mounting external threats and increased trade disputes with the U.S.

“Korea is not just a trade partner, but also a strategic manufacturing ally of the U.S. — from AI (artificial intelligence) and energy to semiconductors and shipbuilding,” she said. However, she added that “unless Korea’s industrial ecosystem survives, this alliance cannot thrive.”

Lee warned that the collapse of Korea’s manufacturing ecosystem will damage its own economy and undercut its role in global supply chains and defense cooperation with the U.S.

“In the field of AI, for example, the U.S. leads in software and foundational research, while Korea leads in applied technologies such as autonomous manufacturing and smart medical devices,” she said. “Without Korean manufacturing, those innovations risk never moving beyond the conceptual stage.”

Lee called on the Korean government to recognize that global economic competition is no longer about individual corporations, but national capacity.

“It’s no longer one company against another — it’s country against country in terms of industrial strength.”

She pointed to the U.S. Inflation Reduction Act as an example of a sophisticated industrial strategy, praising its clear focus and policy coherence.

“That’s not just protectionism. It’s precision policymaking. Korea needs to respond with the same level of sophistication.”

Lee emphasized that Korea must move away from the outdated belief that markets alone can ensure industrial balance.

“If left to the market, only the giants will survive. The rest, including our upstream suppliers and regional SMEs (small and medium-size businesses), will be wiped out,” she said.

Instead, she advocated a government-led roadmap tailored to each industry in order to provide policy clarity, ensure fair competition and guide restructuring.

“It’s not about bailing out struggling firms. It’s about safeguarding the fundamental capabilities that support national security and our international alliances,” she said.
Bill aims to halt ‘hollowing out’

In May, Lee introduced legislation aimed at preventing the hollowing out of critical industries, targeting sectors such as steel, petrochemicals and shipbuilding. The bill calls for the creation of a task force charged with advancing these key industries over the long term.

Key measures include expanded research and development tax credits, targeted financial support for restructuring, along with the vertical integration of supply chains for materials, parts and equipment.

“This isn’t about saving a single factory,” Lee said. “It’s about rebooting the ecosystem with practical financial tools and hands-on consultancy.”

1,000-page plan

Beyond her legislative efforts, Lee heads the DPK’s future economic growth strategy committee, which has produced a comprehensive 1,000-page development roadmap. The report lays out reform agendas spanning a broad range of sectors, including AI-driven autonomous manufacturing, small modular reactors, green shipping, defense technology, education reform and smart logistics.

“We are at a turning point that demands a complete transition towards AI-driven digitalization, smart manufacturing and green industries,” Lee said. “Even small and medium-size enterprises must embrace autonomous, AI-based innovation, but this will not happen without strategic guidance from the government.”

Who is Lee Un-ju?

Lee is a three-term DPK lawmaker. She currently serves as a member of the Supreme Council, as chair of the Future Economic Growth Strategy Committee and as head of the AI AX Subcommittee under the party’s AI Superpower Initiative. Prior to entering politics, she worked in the private sector as a corporate legal expert and is widely recognized as one of the party’s leading economic strategists.
Source: The Korea Times