Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
US Navy secretary visit to Hanwha Philly Shipyard helps tariff deal
U.S. Director of the Office of Management and Budget Russell Vought, second from left, U.S. Secretary of the Navy John Phelan, third from left, pose with Hanwha Group Vice Chairman Kim Dong-kwan, center, during their visit to Hanwha Philly Shipyard in Pa., Wednesday (local time). Courtesy of Hanwha Group
By Nam Hyun-woo
U.S. Secretary of the Navy John Phelan and Director of the Office of Management and Budget Russell Vought visited Hanwha Philly Shipyard shortly before Seoul and Washington announced their agreement on “reciprocal” tariffs, playing a key role in lowering the levy on Korean imports to 15 percent from the proposed 25 percent.
According to Hanwha Group Friday, Phelan and Vought visited Hanwha Philly Shipyard on Wednesday (local time) and toured key production sites with Hanwha Group Vice Chairman Kim Dong-kwan and Philly Shipyard CEO David Kim. They held in-depth discussions on ways to strengthen Korea-U.S. cooperation in the shipbuilding industry.
The visit came after Korea proposed the so-called “Make American Shipbuilding Great Again” (MASGA) project, a $150 billion investment initiative aimed at construction of new shipyards in the United States, training American shipyard workers, rebuilding supply chains related to shipbuilding and the maintenance, repair and overhaul (MRO) of U.S. vessels.
After the visit to the Philly Shipyard, President Donald Trump announced a tariff agreement that included the project. Citing an unnamed U.S. official, Hanwha Group said, “Trump made the final decision on the tariff deal after receiving a report on the site visit by Phelan and Vought.”
During the two U.S. officials’ visit, Vice Chairman Kim said Hanwha has world-class ship design and construction capabilities and plans to use the shipyard as “a strategic base” to spearhead the revitalization of American shipbuilding industry.
He also outlined Hanwha’s mid- to long-term business strategies and investment plans, and called for support and cooperation from the U.S. government.
Phelan previously visited Hanwha Ocean’s shipyard in Geoje, South Gyeongsang Province, in April, where he toured the submarine and commercial vessel construction sites with Kim. He also inspected the MRO process of the USNS Yukon, a U.S. 7th Fleet vessel during the visit.
Hanwha’s shipbuilding unit, Hanwha Ocean, acquired Philly Shipyard in December last year. Since then, the company has launched a full-scale overhaul of the facility, including equipment upgrades, local job creation and technology transfer.
By applying Korean-style production management techniques and process optimization systems, Hanwha said it seeks to increase the shipyard’s annual production capacity from the current 1 to 1.5 vessels to 10 times that amount by 2035.
Hanwha Philly Shipyard is being recognized as a key catalyst behind Thursday’s tariff agreement. President Lee Jae Myung wrote on social media that the project will help Korean companies expand their presence in the U.S. shipbuilding market.