U.S.–South Korea Shipbuilding Alliance Strengthens with
A major strategic partnership is emerging in the global shipbuilding industry. South Korea is planning to allocate a $150 billion fund to support joint shipbuilding initiatives with the United States.
Three of South Korea’s leading industrial giants—Hanwha, Samsung Heavy Industries, and HD Hyundai Heavy Industries—shared key updates on their collaboration with the Pentagon during the Korea Investment Week, held in Seoul from September 9–12. According to Defense News, these efforts are part of a broader initiative known as MASGA – Make American Shipyards Great Again.
Reviving Strategic Shipyards
As the U.S. seeks to expand its naval power in response to China’s increasingly assertive maritime posture, South Korean manufacturers are stepping in to help reshape shipyard operations. One notable development is HD Hyundai’s revival of a previously inactive shipbuilding facility in Subic Bay, Philippines. The site, once the subject of fierce bidding between Chinese and American investors, was ultimately acquired by a U.S. firm and revitalized through South Korean investment.
At the recent forum in Seoul, Jang Gwang-pil, Vice President of HD Korea Shipbuilding & Offshore Engineering, announced that the Subic Bay facility is being developed into a maintenance, repair, and overhaul hub for various vessels, including frigates and patrol boats. He also stated that by consolidating its shipbuilding operations, HD Hyundai aims to increase production of warships for the U.S. Navy.
Hanwha Expands with Dual Hubs Across Continents
Meanwhile, Hanwha made headlines with its acquisition of Philly Shipyard, marking a significant milestone in U.S.–South Korea industrial cooperation. The company revealed plans to establish two operational centers: one in Philadelphia as a production base, and another in Busan, South Korea, dedicated to maintenance and repair services for U.S. naval vessels.
