'MASGA' gains momentum as US allows non-combat ships to be built overseas

Jun 23, 2026, 09:50 am

The iron-clad gates of the US defense procurement market are finally swinging open.

Through the National Defense Authorization Act (NDAA) for Fiscal Year 2027, the US Senate Armed Services Committee (SASC) has made a sweeping concession, permitting the procurement of up to two bulk fuel tankers and two strategic sealift ships from foreign shipyards. Driven by chronic delays in US Navy shipbuilding and a deep slump in the domestic shipbuilding industry, this represents a historic paradigm shift that recognizes the South Korean shipbuilding industry as a core supply chain partner.

Within the United States, momentum is building around the "Make American Shipbuilding Great Again" (MASGA) movement, which seeks to rebuild the stagnant US shipbuilding sector by leveraging South Korea's advanced technological prowess. An defense procurement expert at a prominent domestic law firm, speaking on the condition of anonymity, emphasized, "Since the Senate Committee conditioned this on the subsequent relocation of supply chains into the United States, Korean shipbuilders must preemptively manage the legal risks associated with their local investments."

Consequently, South Korea's Big Three shipbuilders are rapidly accelerating their moves. Hanwha Ocean seized the initiative by proactively acquiring the US-based Philly Shipyard and securing Maintenance, Repair, and Overhaul (MRO) contracts for a total of four vessels, including combat logistics support ships. Meanwhile, HD Hyundai Heavy Industries has teamed up with Huntington Ingalls Industries (HII), the largest military shipbuilder in the US, to secure consecutive MRO orders for large replenishment ships while setting its sights squarely on new strategic sealift ship construction. Samsung Heavy Industries is also jointly participating in the conceptual design of next-generation logistics vessels with US-based NASSCO shipyard.

This permission for foreign procurement of non-combat ships is expected to serve as a catalyst for signing the Reciprocal Defense Procurement Agreement (RDP-A) between South Korea and the United States—a long-cherished goal of the Korean defense industry. Once the RDP-A is finalized, Korean defense firms will be exempted from price premium penalties of up to 50% imposed under the notorious Buy American Act (BAA). They will also be guaranteed immense benefits, including exemptions from defense procurement tariffs and direct entry into the elite global supply chains spearheaded by the US military.

As the United States turns to overseas shipyards to counter China's rapid naval expansion, K-naval defense experts emphasize that the South Korean shipbuilding industry—armed with unrivaled technology and a flawless track record of on-time delivery—stands as the sole breakthrough for the US Navy.

Koo Phil-hyun

#MASGA #Shipbuilding