SEOUL, Oct 26 - South Korea's HD Hyundai Heavy Industries and U.S. shipbuilder Huntington Ingalls have teamed up to build auxiliary ships for the U.S. Navy, according to a statement from the South Korean company on Sunday.

This collaboration is part of an effort to strengthen shipbuilding ties between South Korea and the U.S. HD Hyundai and Huntington Ingalls signed a memorandum of agreement in Gyeongju, where the Asia-Pacific Economic Cooperation (APEC) meetings will be held next week.

U.S. President Donald Trump is expected to visit Gyeongju soon for discussions with South Korean President Lee Jae Myung.

The agreement involves the two companies looking into joint investments for new shipyards or acquiring existing shipbuilding facilities in the U.S., as stated by HD Hyundai Heavy.

In a move to support Trump’s initiative to boost U.S. shipbuilding, South Korea has pledged to invest $150 billion in this sector. This investment is part of a larger $350 billion fund that South Korea committed to U.S. projects after receiving tariff reductions in late July.

However, the specifics of the tariff agreement between South Korea and the U.S. have not been finalized. Trump mentioned that they are close to reaching an agreement, while South Korean officials indicated that key issues still need to be addressed.