U.S. Navy Secretary Visits Hanwha Ocean, Discusses Cooperation with Vice Chairman Kim Donggwan

John C. Phelan Visits Hanwha Ocean Geoje Shipyard on April 30 to Review Naval Vessel Construction Capabilities
"The Relationship Between the U.S. Navy and Korea's Maritime Industry Will Further Strengthen the Alliance Between Our Two Nations"

U.S. Secretary of the Navy John C. Phelan visited the Hanwha Ocean Geoje Shipyard on the afternoon of April 30, 2025.

U.S. Secretary of the Navy John Fillin (third from left) and Hanwha Group Vice Chairman Kim Donggwan (fourth) along with other officials are posing for a commemorative photo in front of the 'Yukon' ship undergoing maintenance at Hanwha Ocean Geoje Shipyard. Provided by Hanwha Ocean

Hanwha Group Vice Chairman Kim Donggwan met with Secretary Phelan on site and held in-depth discussions on ways to enhance cooperation between the Korean and U.S. shipbuilding industries.

Secretary Phelan, guided by Vice Chairman Kim, toured the 'Yukon'?a replenishment oiler of the U.S. Navy's 7th Fleet currently undergoing MRO (Maintenance, Repair, and Overhaul) at the Geoje Shipyard. He also visited key production sites at the Hanwha Ocean Geoje facility, including the submarine construction area and the commercial vessel construction area.

Secretary Phelan closely inspected the 'Yukon' undergoing MRO by Hanwha Ocean and directly observed the company's outstanding MRO capabilities. The 'Yukon', which Hanwha Ocean secured an order for in November 2024, is scheduled to depart next month after completing repairs.

After touring the Hanwha Ocean Geoje Shipyard and the Yukon, Secretary Phelan stated, "The relationship between the U.S. Navy and the Republic of Korea's maritime industry goes beyond ship maintenance; it serves as a cornerstone supporting both countries' commitment to a free and open Indo-Pacific and will further strengthen the alliance between our two nations."

The U.S. government, in its efforts to rebuild its shipbuilding industry and enhance naval power, is positioning allied shipyards as key partners for cooperation.

At the site, Vice Chairman Kim Donggwan emphasized, "Hanwha Ocean has not only become the first Korean company to acquire a shipyard in the United States but has also successfully completed MRO projects for the U.S. Navy, establishing itself as a leader in Korea-U.S. maritime defense cooperation."

Vice Chairman Kim also highlighted, "Hanwha Ocean has established a shipbuilding system capable of responding swiftly in any situation to meet the U.S. Navy's strategic needs. By securing multiple shipyards in the United States, we plan to maximize synergy and further strengthen our presence in the North American market." He stressed that Hanwha Ocean is "the most reliable partner" in Korea-U.S. shipbuilding cooperation.

Hanwha Group Vice Chairman Dongkwan Kim (first on the right) is introducing the ship block assembly plant to U.S. Secretary of the Navy Carlos Del Toro (second on the right). Photo by Hanwha Ocean

In August 2024, Hanwha Ocean became the first domestic shipyard to win the MRO contract for the U.S. Navy's logistics support vessel 'Wally Schirra', successfully completing the maintenance and delivering the ship in March 2025.

During the maintenance of the 'Wally Schirra', Hanwha Ocean identified new repair requirements for the vessel and signed a modified contract guaranteeing additional revenue. Hanwha Ocean's ability to propose additional solutions and resolve issues further solidified the U.S. Navy's trust in the company.

In December 2024, Hanwha Ocean and Hanwha Systems became the first Korean companies to enter the U.S. shipbuilding industry by acquiring the Philly Shipyard.

The acquisition of Philly Shipyard is expected to serve as a turning point for Hanwha Ocean, enabling the company to generate new growth engines in the U.S. shipbuilding market based on its advanced technology and solutions, while also strengthening its position in the global maritime defense industry.

Hanwha is also investing in Austal, an Australian company with shipbuilding facilities in Mobile, Alabama and San Diego, California, by directly purchasing a 9.9% stake and is in the process of increasing its investment to a total of 19.9%.