South Korea, Asia's fourth-largest economy, is facing grueling tariffs by U.S. President Donald Trump, but its shipbuilding industry could prove a useful bargaining chip.

Already hit by sector levies on steel and car exports, Seoul is laser-focused on negotiations over a 25% country-specific tariff that has been suspended until July 8 and the key industry could play a role in easing the higher tariffs.

In the 1970s, South Korea's military leader, President Park Chung-hee, accelerated the country's heavy industry, designating sectors such as steel and shipbuilding "strategically important" and rolling out state subsidies.