Korean Shipbuilders Emerge as Key Leverage in Korea-U.S. Negotiations
Full-Scale Working-Level Coordination Begins After Association-Led Meeting
Discussions Expected on Utilizing Domestic Small and Medium-Sized Shipyards
HD Hyundai, Hanwha Ocean, and Samsung Heavy Industries, the three major Korean shipbuilders, have formed a task force (TF) to implement the United States' shipbuilding revival initiative, known as the MASGA (Maritime and Shipbuilding Great America Project). According to industry sources, the TF's first agenda item is reviewing how to develop a step-by-step action plan (roadmap) that can be realistically executed by the three shipbuilders.
As of August 4, the shipbuilding industry reports that the three companies are operating a working-level TF of about 10 members, coordinated by the Korea Offshore & Shipbuilding Association. This TF was formally established after a consensus was reached between the U.S. and Korean governments on moving forward with the MASGA project. Its main objectives are to consolidate internal strategies within the industry and to secure communication channels with government authorities. Each company has dispatched around two working-level staff to the TF, typically consisting of one executive from the government relations department and one employee.
On June 9, a liquefied natural gas (LNG) carrier filled in the yard dock of Hanwha Ocean Okpo Shipyard in Geoje, Gyeongnam, continued its construction work with lights on. Recently, the United States has been focusing on South Korea as a strategic partner to rebuild its outdated domestic shipbuilding industry. Photo by Kang Jinhyung
The date for the TF's first official meeting is still being coordinated, but within the industry, the formulation of an "implementation roadmap" is emerging as the most urgent and obvious task. One industry source stated, "Establishing an implementation roadmap is essential," and explained that "setting a broad framework takes priority over detailed execution strategies at this stage." Another source commented, "Since MASGA is a project that envisions a $150 billion shipbuilding-dedicated fund, it is necessary to create an 'execution framework' that distinguishes between what companies can actually do and what can be proposed to the government."
The implementation roadmap is considered the minimum requirement to ensure the MASGA project does not remain a mere slogan but achieves practical effectiveness. The roadmap is expected to include: ▲acquisition of domestic small and medium-sized shipyards and their conversion into U.S. Navy-specialized shipyards; ▲establishment or acquisition of new merchant shipyards in the U.S.; ▲scope and timing of technology transfer; and ▲scenarios for utilizing the MASGA fund. In Korea, K Shipbuilding and HJ Shipbuilding & Construction are being discussed as strong candidates. In the U.S., the three Korean shipbuilders are considering acquiring or establishing local shipyards to transfer Korean merchant shipbuilding technology, a model of technological cooperation currently under discussion. The Ministry of Trade, Industry and Energy is also considering the possibility of expanding this cooperation to U.S. Navy vessels in the future.
The three shipbuilders are already operating their own MASGA-linked strategies. Hanwha Ocean plans to increase the annual production capacity of the Subic Shipyard, acquired last year, from 1.5 vessels to 10 vessels by 2035 and is also considering securing additional bases in the U.S. HD Hyundai Heavy Industries has partnered with U.S.-based Edison Chouest Offshore (ECO) to jointly build medium-sized LNG dual-fuel container ships by 2028. Samsung Heavy Industries is reviewing collaboration on local floating LNG production facilities (FLNG) to align with the Delfin LNG project in the Gulf of Mexico.
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