South Korean Firms Invest Billions to Revive U.S. Shipbuilding
Hanwha and HD Hyundai are investing billions in U.S. shipyards to expand naval capacity and counter China's maritime dominance.
South Korean conglomerates are leading a multi-billion dollar effort to revitalize the United States shipbuilding industry, which currently produces less than 1% of the world's ships. Hanwha Group is investing $350 million to upgrade a Philadelphia shipyard it acquired in 2024, with plans for billions in future spending. The company recently secured its first U.S. Navy subcontracting work and a potential $2 billion contract to build an auxiliary ship for the Golden Dome missile-defense system.
These investments align with the Trump administration's goal of establishing a Maritime Golden Age to counter China's dominance. As part of a broader trade deal, the President of South Korea pledged $150 billion to improve U.S. shipbuilding. In a separate initiative, HD Hyundai formed a joint venture with Kiewit to establish a new U.S. shipyard by 2029.
U.S. Senator Dave McCormick is spearheading the legislative push to return naval manufacturing to the U.S. through the Ships for America Act. While the administration has proposed allowing some foreign-built naval ships to accelerate capacity, Congress remains divided over the funding of ships manufactured in foreign yards.
