South Korea is accelerating its global shipbuilding expansion by launching a $150 billion initiative under the MASGA project. This massive fund supports investments in the US shipbuilding sector and aims to strengthen both economic ties and industrial capabilities.
The MASGA project, short for Make American Shipbuilding Great Again, will focus on establishing new shipyards and training a skilled workforce. Additionally, it will rebuild supply chains and launch maintenance and repair operations. South Korea’s government sees this initiative as a gateway for its shipbuilders to enter the lucrative US market.
South Korean Deputy Prime Minister Koo Yoon-cheol announced the move during a press conference in Washington. He highlighted the importance of MASGA for Korean shipbuilders and the long-term benefits for both nations.
The $150 billion shipbuilding cooperation fund includes investments, loans, and guarantees. Korean shipbuilders expect this support will create new opportunities and help them grow their presence in the US.
Korean companies like Hanwha and HD Hyundai have already made early moves. Hanwha acquired the Philly Shipyard and secured several maintenance contracts with the US Navy. Meanwhile, HD Hyundai formed a partnership with Huntington Ingalls Industries and joined forces with Edison Chouest Offshore to build ships.
Through the MASGA project, South Korea expects to gain more access to both military and commercial shipbuilding contracts. Officials and analysts believe the cooperation will allow Korean companies to construct warships at American yards or even in Korea for the US.
Industry insiders say the US warship market is massive. By supporting MRO projects for the US Navy, Korean firms can build trust with American partners and expand further.
The shipbuilding cooperation between South Korea and the US goes beyond economic gains. It enhances Korea’s strategic role in global supply chains and helps it localize operations in response to trade restrictions.
Experts also expect the MASGA fund to boost production of LNG carriers and military vessels at US-based facilities. This will help Korean firms secure steady orders and long-term contracts.
A recent report from a Washington-based think tank emphasized the benefits of US-Korea cooperation in shipbuilding. It praised Korea’s shift from labor-heavy practices to technology-driven production, supported by automation and advanced control systems.
Altogether, the MASGA initiative offers Korean shipbuilders a pathway to scale operations, enter new markets, and strengthen defense cooperation. As MASGA grows, South Korea aims to secure its lead in the global shipbuilding industry.
