Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Sale of HD Hyundai's Gunsan dockyard gives boost to MASGA
Representatives from HD Hyundai Heavy Industries and EcoPrime Marine Pacific sign an agreement for the sale of the Gunsan dockyard at EcoPrime Marine Pacific's office in Seoul, Friday. Courtesy of EcoPrime Marine Pacific
By Park Jae-hyuk
Shipbuilders ramp up investments targeting US market
HD Hyundai Heavy Industries (HHI) signed an agreement Friday to sell its dockyard in Gunsan, North Jeolla Province, to the largest shareholder of HJ Shipbuilding & Construction (HJSC), raising expectations that both shipbuilders will step up efforts to expand their U.S. presence.
The same day, Samsung Heavy Industries announced the opening of its first U.S. research center, which the company described as the beginning of the full-scale launch of the Make American Shipbuilding Great Again (MASGA) project.
Industry officials expect domestic shipbuilders to accelerate investment in the government-led project to revitalize U.S. shipyards through Korean capital — which played a crucial role in the 2025 Korea-U.S. tariff agreement — as the National Assembly passed a special law Thursday legitimizing Korea’s $350 billion investment in U.S. shipbuilding and other industries.
According to HD HHI's regulatory filing, EcoPrime Marine Pacific will acquire real estate and movable assets at the Gunsan dockyard after conducting due diligence to assess their value.
HD Hyundai, the parent company of HD HHI, is expected to invest in U.S. shipyards with proceeds from the deal, which is estimated at up to 1 trillion won ($665 million).
Amid the company’s ongoing partnerships with U.S. defense firm Huntington Ingalls Industries and U.S. private equity firm Cerberus Capital Management, HD Hyundai has stressed the group’s plan to acquire and upgrade U.S. shipyards.
"HD Hyundai will support the U.S. shipbuilding industry and strengthen the U.S. Navy’s capabilities," HD Hyundai Chairman Chung Ki-sun said last November. "As blood allies and close friends, we will work together to ensure the success of the MASGA."
HJSC, which will manage the Gunsan dockyard after its largest shareholder’s takeover, plans to use the facility to maintain U.S. naval ships.
HD HHI has not built any new ships at the Gunsan dockyard since 2017. After reopening in 2023, the facility has produced only shipbuilding blocks that are shipped to the company’s main shipyard in Ulsan.
“The Gunsan dockyard will be more useful, considering its potential use for the maintenance, repair and overhaul (MRO) of U.S. naval vessels aligned with the MASGA project,” North Jeolla Province Gov. Kim Kwan-young said after the deal was announced.
In January, HJSC and the U.S. Naval Supply Systems Command signed a master ship repair agreement, a prerequisite for privately owned shipbuilders seeking to enter the U.S. naval vessel MRO market.
“It seems that HJSC is ultimately aiming to build U.S. combat support ships and warships,” IBK Securities analyst Oh Ji-hoon said.
Representatives from Samsung Heavy Industries and San Diego State University pose after opening a joint research center in San Diego, Thursday (local time). Courtesy of Samsung Heavy Industries
Samsung Heavy Industries, which has focused more on commercial vessels, opened an advanced maritime center in collaboration with San Diego State University.
The shipbuilder said the new center will seek cooperation to help revitalize the U.S. shipbuilding industry in areas such as artificial intelligence-based production automation, robotics and eco-friendly technologies.
“The establishment of the joint research center in the U.S. marks the starting point for the full-scale implementation of MASGA, which has long been in preparation,” Samsung Heavy Industries Chief Operating Officer Lee Wang-keun said.