S. Korea ruling party's acting leader Kim says

S. Korea ruling party's acting leader Kim says

Seoul, July 2, 2025 — South Korea and the United States have bolstered their shipbuilding partnership following a visit by U.S. Secretary of the Navy John Phelan and White House budget official Russel Vought to Hanwha Philly Shipyard in Philadelphia. This visit took place just before Seoul and Washington reached a trade agreement that includes a 15 percent reciprocal tariff on South Korean imports.

Hanwha Philly Shipyard, now owned by Hanwha Ocean Co., the shipbuilding arm of South Korean conglomerate Hanwha Group, is at the center of this strategic alliance. The shipyard was acquired in December 2024 and has since been the subject of significant investment and development plans.

The visit by Phelan and Vought occurred on July 30, 2025, and was part of a broader initiative called "Make American Shipbuilding Great Again (MASGA)," which aims to revitalize the U.S. shipbuilding industry. This initiative is part of a $350 billion investment package pledged by Seoul in return for Washington's decision to lower reciprocal tariffs from an initially proposed 25 percent to 15 percent.

Hanwha Group Vice Chairman Kim Dong-kwan, citing the MASGA project, stated that Hanwha will use Philly Shipyard as a base to establish a new shipyard in the U.S., train a skilled workforce, rebuild shipbuilding-related supply chains, and enhance maintenance, repair, and overhaul (MRO) capabilities. Kim also briefed the U.S. officials on Hanwha's business and investment plans in the U.S., requesting continued support and cooperation from the U.S. government.

Phelan's visit was intended to witness Hanwha's investment firsthand and assess how the company is enhancing shipbuilding capabilities on American soil. This visit follows previous discussions between the Navy secretary and Hanwha Ocean's shipyard in Geoje, South Korea, in April 2025.

Hanwha has plans to increase Philly Shipyard's annual shipbuilding capacity tenfold by 2035, from the current 1-1.5 vessels to more than 10 ships. This expansion aims to align with U.S. President Donald Trump's repeated calls to rebuild the American shipbuilding sector and strengthen industrial partnerships with allies like South Korea, a global leader in naval vessel construction.

The visit underscores the importance of the MASGA initiative in fostering a robust shipbuilding industry in the U.S. and highlights the strategic partnership between South Korea and the United States in this sector.

References:
[1] https://en.yna.co.kr/view/AEN20250801003400320