| Hanwha Philly Shipyard (Hanwha Group) |
Collaboration with South Korea is crucial to reviving America’s maritime industry and countering China's growing influence in global shipbuilding, the Hudson Institute, a leading US conservative think tank, said in a recent commentary.
Michael Roberts, senior fellow at the institute’s center for defense concepts and technology, urged Washington in an early October note to deepen cooperation with allies like Seoul, citing Hanwha Group’s recent investment in a US shipyard.
“Hanwha’s expansion plan in Philly Shipyard is precisely what the Trump Administration and Congressional leaders might have hoped for,” Roberts wrote. “Just as the US can enhance Korea’s security in energy and other sectors, Korea’s expertise in shipbuilding can help restore America’s maritime strength.”
The shipyard in Pennsylvania was acquired by Hanwha’s defense subsidiaries, Hanwha Ocean and Hanwha Systems, in a $100 million deal in 2024. It has since become a symbol of the Korean industry’s push to reinvigorate shipbuilding in the US, now dubbed the Make American Shipbuilding Great Again, or MASGA, initiative.
The shipbuilding revitalization effort has gained bipartisan support across US politics, including backing from US President Donald Trump, while the shipyard itself has hosted visits from both US lawmakers and Korean President Lee Jae Myung.
Roberts further noted that Hanwha’s investment would bring “world-class shipbuilding technology” to the US and create hundreds of skilled local jobs.
The US has faced a long-term decline in its maritime influence, both commercially and militarily, while China has strengthened its dominance through powerful shipbuilding capacity.
Washington has sought to curb Chinese influence by imposing port entry fees on Chinese-built commercial ships. These measures have partly contributed to Chinese shipyards’ global market share falling from 75 percent to 56 percent year-on-year in the first half of 2025.
However, heavy global reliance on Chinese-built vessels and the limited capacity of US shipyards have raised concerns that America’s weakening maritime position may persist.
According to BRS Shipbrokers, the US has delivered only 37 commercial ships over the past decade, compared to 6,765 by China and 2,405 by South Korea.
Meanwhile, Korea, currently in negotiations with the US to reduce the 25 percent tariff on cars to 15 percent, is seeking to leverage its shipbuilding prowess in the talks.
According to local media reports, Industry Minister Kim Jung-kwan and Presidential Chief of Staff for Policy Kim Yong-beom discussed the MASGA initiative with the White House Office of Management and Budget during their visit to Washington for the tariff negotiations on Thursday.
