Monday, January 26, 2026

Korea Eyes Billions in US Naval Deals as Shipbuilding Partnership Expands

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Korea’s shipbuilding partnership with the United States is gaining momentum as both countries move toward legislative reforms. The “Make American Shipbuilding Great Again” initiative seeks to boost joint projects by easing restrictive US laws. This development could open the way for deeper defense and industrial collaboration between the two nations.

Vice Minister Kang Hwan-seug recently met with Jason Potter, the US Navy’s assistant secretary for research, development, and acquisition, in Washington. Korean officials proposed that their shipbuilding industry could assist the US Navy by producing block modules for warships and sending them to US shipyards for assembly. Both parties agreed that laws like the Byrnes-Tollefson Act should be updated to strengthen the shipbuilding partnership.

The meeting also led to plans for a new working-level group to outline specific cooperation measures. Meanwhile, US lawmakers have advanced related reforms. Representatives Ed Case of Hawaii and Jim Moylan of Guam introduced the Merchant Marine Allies Partnership bill, seeking changes to the Merchant Marine Act of 1920. This proposal would let allied shipyards join US domestic trade and reduce tariffs on vessel modifications.

The bill would allow ships built in allied nations to qualify for US trade routes while waiving duties if modifications occur in partner countries. Supporters believe these reforms will modernize maritime policy and give the shipbuilding partnership a competitive edge. Korean shipyards, with their advanced capabilities, could benefit greatly from the changes.

US Senator Mike Lee introduced another bill to let foreign shipyards build US naval fleets. Korean defense experts urge proactive lobbying and legal preparation to navigate the US legislative process. They also recommend staying ahead of Japanese and Indian rivals before the US warship market opens to allied nations.

Lee So-young, a military judge, stressed the need for early strategic positioning. She said Korean shipbuilders should showcase how they can improve US naval capacity while offering efficiency benefits. The MASGA initiative has already been linked to recent trade gains between the two countries.

To solidify cooperation, Seoul pledged a $150 billion shipbuilding cooperation fund for US investments. This funding will expand Korean shipyard operations in America and support the revival of the US shipbuilding industry. These moves could place Korea at the center of a new global naval shipbuilding alliance and reinforce the shipbuilding partnership.

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