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How can Korea 'Make American Shipbuilding Great Again'?
Hanwha Group Vice Chairman Kim Dong-kwan, right, briefs U.S. Navy Secretary John Phelan, second from right, on a block assembly plant at Hanwha Ocean's shipyard on Geoje Island in South Gyeongsang Province, April 30. Courtesy of Hanwha Ocean
By Park Jae-hyuk
Seoul likely to highlight Hanwha's investments in US shipyards
Attention is focused on whether Hanwha Group Vice Chairman Kim Dong-kwan will give momentum to Seoul’s effort to leverage shipbuilding in the ongoing trade talks to convince Washington to cut “reciprocal” duties and item-specific tariffs already imposed on cars and steel.
Kim departed for Washington on Monday, prompting speculation that he will join Korean government negotiators, who proposed a project they called “Make American Shipbuilding Great Again" (MASGA).
Paying homage to U.S. President Donald Trump’s signature slogan, “Make America Great Again,” the proposal is aimed at launching a joint initiative to revitalize the U.S. shipbuilding industry.
Although Hanwha has refused to confirm the vice chairman’s itinerary and the government is reluctant to reveal details about its negotiation strategy, expectations are growing that Seoul will highlight the conglomerate’s significant investments in U.S. shipyards as a way to avert or lower tariffs. The Trump administration plans to impose a 25 percent reciprocal tariff on all Korean goods starting Aug. 1.
“I will present a detailed explanation of the current state of Korean industries, including shipbuilding, and explore medium- to long-term ways for cooperation in other sectors,” Deputy Prime Minister and Finance Minister Koo Yun-cheol told reporters Tuesday, before departing for Washington to meet U.S. Treasury Secretary Scott Bessent on Thursday (local time).
The presidential office also said Monday that a series of meetings last weekend between Industry Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick were intended to advance discussions on a shipbuilding partnership.
Korean shipbuilders have already strengthened ties with U.S. partners in line with Trump’s stated goal to revive the country’s shipbuilding sector and counter China’s maritime growth.
Hanwha, which acquired Philly Shipyard in Philadelphia for $100 million last year, recently placed an order to build a liquefied natural gas (LNG) container vessel with the U.S. shipyard, allowing its workers to learn advanced technologies from Hanwha Ocean’s Geoje shipyard in South Gyeongsang Province, which will handle most of the vessel’s construction.
This marks the first time in five decades that a U.S. shipyard has received an order to build an LNG container vessel intended for export.
Given Hanwha’s ongoing efforts to acquire Australia's Austal, which has operations in the U.S., Kim is expected to introduce plans for further investment in the U.S. shipbuilding industry.
“Hanwha Ocean aims to be a strategic partner in helping the U.S. shipbuilding industry take a leap forward,” Hanwha Ocean CEO Kim Hee-cheul said in May, during his meeting with U.S. Trade Representative Jamieson Greer on Jeju Island on the sidelines of the APEC trade ministers’ meeting.
“Based on our proven technologies and smart manufacturing system, we will deliver tangible results on U.S. soil,” Kim added.
HD Hyundai has also repeatedly emphasized its commitment to the U.S. shipbuilding sector.
In April, the company partnered with Huntington Ingalls Industries to share expertise in operating the world’s largest shipyard. In addition, it began talks this month with Edison Chouest Offshore about jointly building container vessels at the U.S. firm’s shipyards.
Donald Trump, second from right, takes a look at Daewoo Shipbuilding & Marine Engineering's shipyard which is now operated by Hanwha Ocean on Geoje Island in South Gyeongsang Province, in this 1998 photo. Courtesy of Hanwha Ocean
Citing Trump’s strong interest in Korean shipbuilding technology, the government and the ruling party have expressed optimism that the MASGA proposal will create a win-win situation.
The proposal has also been touted as a way to sidestep U.S. requests for Korea to promise sizable investment in the world’s largest economy, as Japan and the European Union did to reduce tariff rates.
However, it remains to be seen if the proposal will persuade Washington to lower tariffs on Korean goods to the 15 percent level that Japanese and European products will face.
While the presidential office said the U.S. is interested in a shipbuilding partnership, Lutnick has not mentioned the issue in his recent remarks during talks with Korean officials.
Instead, he told Fox News on Monday (local time) that Korean negotiators “really want to get a deal done,” confirming rumors that they flew to Scotland to meet him after an extended stay in Washington to continue tariff talks.
“The South Koreans flew to Scotland to meet with me and Ambassador Greer after dinner,” he said.