KB News Desk
Washington’s push to rebuild naval capacity could expand opportunities for Hanwha, HD Hyundai, Samsung Heavy Industries
US President Donald Trump has raised the possibility of purchasing ships built outside of the US while highlighting South Korean companies as potential partners in rebuilding the US Navy.
Speaking Wednesday at the Pennsylvania Defense and Innovation Summit at the US Army War College in Carlisle, Pennsylvania, Trump said an expanded partnership with South Korea is critical to revitalizing the US’ aging shipbuilding sector.
“We have to build our Navy … We’ve got to get it going. So, we’re going to probably look at some of these companies that are coming in from South Korea and other places, and they’re working with us on ships,” Trump said at the event.
“We’re going to also build. We’re going to also buy some ships that are made outside of the area. We need a lot of ships for our Navy, despite the fact we have the greatest navy in the world. But our ships are getting older, and we really got out of that business,” he added.
It was not immediately clear whether Trump’s reference to ships made “outside the area” specifically meant vessels constructed outside the US. Still, his remarks appeared to leave open the possibility of overseas construction as Washington seeks rapid expansion and modernization of its fleet.
Trump also mentioned that two National Security Multi-Mission Vessels would be built at Hanwha Philly Shipyard in Philadelphia, a project worth about $1.5 billion.
The remarks were the latest indication that South Korean shipbuilders could take on a larger part in rebuilding US naval shipbuilding capacity.
President Lee Jae Myung said Trump asked during their meeting on the sidelines of the G7 summit last month whether South Korea could quickly build 10 US naval vessels. The two leaders discussed military shipbuilding again during a NATO summit dinner last week.
In a separate development, the Pentagon and the US Navy recently sent requests for information, or RFIs, to HD Hyundai Heavy Industries and Hanwha Ocean for combat vessels.
The requests marked the first time the US has officially reached out to South Korean shipbuilders to assess their naval vessel design and construction capabilities since shipbuilding cooperation between the two countries launched under the “Make America Shipbuilding Great Again” in August.
Under the MASGA project, Seoul agreed last year to invest $150 billion to help revitalize the US shipbuilding industry, as part of its $350 billion investment package in the US.
Hanwha appears best positioned to benefit in the near term because it already owns a shipyard in the US. The company acquired Philly Shipyard in December 2024 for $100 million and is working through the licensing procedures needed to build combat ships in the country.
“Our shipyard in Korea puts out about one ship a week. We have a plan to bring that capability to Philadelphia,” said Michael Coulter, president and CEO of Hanwha Defense USA, at the summit.
HD Hyundai and Samsung Heavy Industries have also expanded their US partnerships as they seek to enter the American naval shipbuilding market.
HD Hyundai has partnered with Huntington Ingalls Industries, the largest US military shipbuilder, to co-build the US Navy’s next-generation fleet auxiliary ships. Samsung Heavy Industries has teamed up with General Dynamics NASSCO on US Navy shipbuilding and commercial projects.
Despite Trump’s remarks, major regulatory hurdles remain. The construction of US naval vessels at foreign shipyards is effectively restricted under the Byrnes-Tollefson Amendment, which limits the building of US Navy vessels outside the US.
Allowing Korean yards to build complete US Navy vessels would therefore require a legal exemption, legislative changes or another arrangement approved on national security grounds.
