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President Lee Jae-myung and First Lady Kim Hye-kyung arrive at Joint Base Andrews in Maryland on August 24 ahead of the Korea-U.S. summit at the White House. / Source: Yonhap News

The Wall Street Journal (WSJ) reported on August 24 that South Korea is emerging as a central partner in the U.S. “Make American Shipbuilding Great Again” (MASGA) initiative, with Korean shipbuilders securing contracts for maintenance, repair, and operations (MRO) on U.S. Navy vessels.

According to the WSJ, Hanwha Ocean has won three MRO projects and HD Hyundai Heavy Industries one since last year, servicing non-combat ships belonging to the Japan-based U.S. Seventh Fleet. Samsung Heavy Industries, though not engaged in naval shipbuilding, is also reviewing potential MRO projects.

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U.S. President Donald Trump (fifth from left) poses for a photo with South Korea’s trade negotiation delegation during a Korea-U.S. trade meeting at the White House on July 30. The delegation includes Deputy Prime Minister and Finance Minister Koo Yun-cheol (sixth), Trade, Industry and Energy Minister Kim Jung-kwan (fourth), and Trade Negotiation Head Yeo Han-goo (third). Also pictured are U.S. Secretary of State Marco Rubio (right), Treasury Secretary Scott Besant (third from right), USTR Representative Jamieson Greer (fourth from right), and Commerce Secretary Howard Rutnick (second from left). / White House via X

The report noted that while U.S. law generally limits foreign shipyards to repairs on auxiliary and supply vessels during routine port visits, bipartisan lawmakers have introduced the “Merchant Marine Allies Partnership Act” to loosen restrictions for trusted allied shipyards in Korea and Japan.

Industry officials told WSJ that HD Hyundai could build U.S. destroyers at its Ulsan shipyard at roughly half the cost and in two-thirds the time compared with American yards. “It’s not especially profitable, but it’s something we must do to build trust as an allied partner rather than a competitor,” said Jung Woo-man, senior executive at HD Hyundai Heavy Industries.

The article also spotlighted Hanwha’s December 2024 acquisition of Philadelphia’s historic shipyard for $100 million. U.S. Navy Secretary Carlos Del Toro praised the investment, saying it would double employment and quadruple production capacity, enabling the facility to compete for both commercial and naval contracts. President Lee Jae-myung is scheduled to tour the Hanwha Philadelphia Shipyard following his first summit with President Donald Trump at the White House on August 25.

The WSJ stressed that South Korea, the world’s No. 2 shipbuilding power with 22% of global commercial capacity, has shown greater enthusiasm than Japan in helping the U.S. rebuild its naval shipbuilding industry. The U.S., by contrast, accounts for less than 1% of global commercial shipbuilding, compared with nearly 60% for China.

Under a trade deal struck on July 30, Trump agreed to lower reciprocal tariffs on Korean goods from 25% to 15%, while Korea committed to invest $350 billion in the U.S., including $150 billion dedicated to the MASGA shipbuilding initiative.