South Korea and the United States are advancing the “MASGA” (Make American Shipbuilding Great Again) initiative; in this context, Ministry of Trade, Industry and Energy of South Korea (MOTIE) has requested that the U.S. side reconsider tariff exemptions for steel, components, and other shipbuilding materials in Pennsylvania—the home of the Hanwha Philly Shipyard.
On March 18, MOTIE announced that Park Dong-il (transliterated), Director-General of the Department of Industrial Policy under MOTIE, held talks with Rick Siger, Secretary of the Pennsylvania Department of Community and Economic Development, in Jung-gu, Seoul to discuss cooperation and development initiatives for the shipbuilding industries of the two countries. During his visit to South Korea, Rick Siger will focus on strengthening shipbuilding cooperation, including a visit to Hanwha Ocean’s Geoje Shipyard.
The talks aim to advance cooperation between the two nations in the shipbuilding sector, including South Korean investment in the U.S. shipbuilding industry. Pennsylvania is home to the Hanwha Philly Shipyard—acquired by Hanwha Ocean in 2024—which currently specializes in the construction of training vessels and medium-sized tankers. Hanwha Ocean plans to invest in expanding the facility and installing automated systems, thereby boosting its annual production capacity from 1.5 vessels to more than 10.
During the meeting, Park Dong-il stated that, in order to advance the MASGA project, South Korean shipbuilding companies are currently evaluating several initiatives aimed at expanding U.S. shipbuilding capacity, training personnel, and strengthening the supply chain. He further emphasized that, to reinforce Hanwha Philly Shipyard’s leading position, tangible support from the State of Pennsylvania is essential. This support includes: streamlining administrative approval processes—such as permitting for the shipyard’s expansion; actively developing supporting transportation and power infrastructure; establishing a “Marine Prosperity Zone” (MPZ) in Philadelphia; and providing support for labor costs.
Furthermore, MOTIE has requested that the U.S. grant tariff exemptions for materials such as shipbuilding steel and components, thereby ensuring the smooth execution of shipbuilding operations within the United States.
Park Dong-il further proposed integrating the South Korean government’s export support policies for shipbuilding materials with the “Korea-U.S. Shipbuilding Cooperation Center,” scheduled to be established in 2026, and expressed a desire to expand cooperation with universities and research institutions in Pennsylvania in fields such as Artificial Intelligence Transformation (AX).