- South Korean President Lee promotes $150 billion US shipbuilding investment.
- Hanwha plans up to $5 billion expansion at Philly Shipyard.
- Legal hurdles to foreign involvement in US shipbuilding remain.
- Shipbuilding key to South Korean investment promises to limit US tariffs
In a bold economic outreach, South Korean President Lee Jae Myung unveiled a sweeping $350 billion investment initiative during his maiden official visit to the United States—aimed squarely at revitalizing the troubled U.S. shipbuilding sector and aligning with President Donald Trump’s “Make America Shipbuilding Great Again” agenda, reports Reuters.
Major Commitments and Strategic Push
President Lee announced that $150 billion of the broader investment will specifically target the U.S. shipbuilding industry. This includes a high-profile $5 billion pledge to expand operations at the Hanwha-owned Philly Shipyard, aiming to ramp production from less than two ships per year to as many as 20.
Beyond shipyard investments, South Korea and the U.S. agreed to deepen their trade and defense cooperation. Plans include increased defense spending by Seoul and enhanced collaboration in naval repair, marine logistics, and broader strategic industries.
Strategic Industry Investments
South Korean companies, notably HD Hyundai and Samsung Heavy Industries, signed non-binding agreements to support U.S. maritime development. These partnerships are not limited to shipbuilding but extend to naval infrastructure and logistics.
Despite the enthusiasm, significant challenges loom. U.S. shipyard infrastructure is outdated, the domestic skilled labor pool is insufficient, and restrictive regulations—like the Jones Act and the Byrnes-Tollefson Amendment—threaten the feasibility of large-scale collaboration. South Korea is exploring legal workarounds to navigate these hurdles.
President Trump acknowledged that some ships under these programs will continue to be built in South Korea during the interim.
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Source: Reuters
