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An iconic view of Hanwha Philly Shipyard, Hanwha Ocean's base for its U.S. expansion. A massive container ship is guided out from the shipyard pier into the Atlantic Ocean by multiple tugboats. / Hanwha Ocean

Russell Vought, Director of the White House Office of Management and Budget (OMB), stated that the U.S. will cooperate with South Korea and Japan to rebuild the U.S. shipbuilding industry, emphasizing that companies investing in the U.S. must be rewarded.

Amid prevailing pessimistic forecasts that even if the U.S. Navy injects massive budgets into fleet modernization, tens of trillions of won could vanish into thin air and full force recovery could take decades under current deficient U.S. shipbuilding infrastructure, he also noted that federal government contracting opportunities must be opened up. With these remarks explicitly naming Hanwha, expectations have grown further for Korean shipbuilders, including Hanwha Ocean and HD Hyundai Heavy Industries, to take part in U.S. Navy projects.

Speaking at a dialogue hosted by the Hudson Institute on the 2nd (local time), OMB Director Vought said, "We're going to work with Japan and South Korea," expressing a desire to learn how they build ships and apply those methods in the U.S. Noting that Hanwha made large-scale investments when the Philadelphia shipyard was in crisis, he underscored the view that federal contracting opportunities should be opened and that companies coming to invest in the U.S. ought to be rewarded.

However, this represents directional guidance rather than a finalized policy. The specific compensation mechanisms and targeted contracts were not detailed. Pointing out that U.S. shipyards had shrunk from 49 during World War II to just 12, Director Vought remarked that "more competition and capacity are desperately needed."

Hanwha Ocean (40% stake) and Hanwha Systems (60%) acquired Philly Shipyard in December 2024 for approximately 100 million dollars. Transportation Secretary Sean Duffy and Director Vought announced at the shipyard on July 17 (local time) that two missile-tracking ships valued at approximately 2 billion dollars would be built there. According to a U.S. Department of Transportation press release, maritime services firm TOTE Services will oversee construction management.

President Trump signed a National Security Presidential Memorandum on August 13, allowing foreign shipbuilders that build a new shipyard in the U.S. or secure a majority stake to construct up to two vessels at their home shipyards. According to a White House fact sheet, subsequent vessels must be built within the U.S., with requirements for training U.S. workers and transferring technology.

Over the past year, Hanwha Ocean and HD Hyundai Heavy Industries secured Master Ship Repair Agreement (MSRA) certifications required for U.S. Navy vessel maintenance contracts. In March 2025, Hanwha Ocean completed maintenance on the U.S. dry cargo and ammunition ship USNS Wally Schirra in Geoje. HD Hyundai agreed with Huntington Ingalls Industries (HII), the largest U.S. defense shipbuilder, on joint design and construction of Navy logistics support ships, though investments in U.S.-based shipyards are reportedly under review.

The memorandum allows U.S. law prohibiting overseas construction (the Byrnes-Tollefson Amendment) to be waived on a case-by-case national security basis, while requiring contracts to be executed only after 30 days have elapsed following notification to Congress. The Shipbuilders Council of America protested the move, arguing that it undermines maritime action plans. Japanese firms such as Mitsubishi Heavy Industries are also in discussions with the U.S. government. South Korea has earmarked 150 billion dollars of its 350 billion dollar U.S. investment pledge for shipbuilding cooperation. Translating these efforts into actual orders will hinge on concrete compensation plans and congressional procedures.

                                                                                                             Koo Pil-hyun