US, South Korea open shipbuilding center to implement $150 billion MASGA plan

15 agreements signed as initiative moves to project development

South Korea’s Ministry of Trade, Industry and Resources and the U.S. Department of Commerce jointly held the opening ceremony Thursday at the Mayflower Hotel in Washington with about 130 government, congressional, corporate and industry officials attending. South Korean Trade, Industry and Resources Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick attended, along with Acting Navy Secretary Hung Cao and U.S. Ambassador to South Korea Michelle Steel.

“KUSPC is an unprecedented cooperation platform in the global shipbuilding industry and a symbol of South Korea’s firm commitment to helping rebuild the U.S. shipbuilding industry,” Kim said. He said the center would help South Korean shipbuilding technology take root across U.S. coastal industrial regions and called on the United States to provide continuing ship orders, investment incentives and regulatory relief.

The center was established as a follow-up to the Korea-U.S. Shipbuilding Partnership Initiative signed May 8 and began operations about two months after the two governments reached the agreement. It will connect South Korean shipbuilders with U.S. shipyards, technology companies and research institutions, with work including shipyard productivity improvement, skilled worker training, equipment supply chain development, joint technology projects and direct investment identification.

Center President Lee Jong-geon said the organization would link the two governments with shipyards, universities, research institutions and investors and support workforce training, productivity consulting and joint technology development to help restore the fundamental competitiveness of the U.S. shipbuilding industry.

The 15 agreements announced at the ceremony cover four areas: the creation of Team Korea, supply chain cooperation, workforce development and joint technology research. HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries joined the Korea Offshore & Shipbuilding Association, the Korea Research Institute of Ships and Ocean Engineering and the new center to form Team Korea for coordinated expansion in the U.S. market.

Under specific agreements, HD Korea Shipbuilding & Offshore Engineering agreed to work with Siemens Digital Industries Software on digital systems for next-generation ship design and production. The company also plans to provide Fraser Industries with shipyard productivity assessments and support for the introduction of automation technology. Hanwha Ocean will work with the Chamber of Commerce for Greater Philadelphia to help local manufacturers enter the shipbuilding supply chain.

South Korean marine equipment company JJ & Companies will provide equipment and vessel repair technology to Nichols Brothers Boat Builders and Everett Ship Repair to strengthen local maintenance, repair and overhaul capacity. HD Hyundai Samho also signed a contract to supply four port cranes to Washington United Terminals at the Port of Tacoma, extending the partnership to port modernization.

The center will support programs designed to address the shortage of skilled shipbuilding workers in the United States. Hanwha Philly Shipyard will provide welding, painting and other technical training at Delaware County Community College in Pennsylvania, connecting classroom instruction with internships and employment at the shipyard. Samsung Heavy Industries and Vigor Marine Group plan to establish a workforce training center equipped with virtual reality and augmented reality welding systems. The South Korean government plans to dispatch retired engineers and production specialists to U.S. shipyards to advise on process efficiency, yard operations, quality control and environmental management, while offering one- to two-month training placements at South Korean shipyards for U.S. shipyard managers and engineers.

South Korea plans to invest 120 billion won ($80.4 million) over five years in joint shipbuilding research with the United States. Seven South Korean companies and institutions and nine U.S. organizations will carry out eight projects combining South Korean shipbuilding and production capabilities with U.S. artificial intelligence and robotics technology. The projects include AI-based ship design optimization, 3D printing of marine components, autonomous welding of aluminum naval vessel panels and automated painting of large ship sections.

HD Hyundai Heavy Industries will work with U.S. defense technology company Anduril Industries to develop and test autonomous navigation and engine automation platforms for unmanned vessels. Samsung Heavy Industries will collaborate with Saronic Technologies on unmanned surface vessels and the application of automation systems at U.S. shipyards. Hanwha Ocean will jointly design a global fast sealift vessel with Leidos subsidiary Gibbs & Cox.

The center will begin operations with 6.6 billion won ($4.4 million) in government funding this year, with an initial operating period from 2026 through 2028 budgeted at 19.93 billion won ($13.4 million). It will operate as a nonprofit organization from the Korea International Trade Association’s Washington office. South Korea’s strategic investment corporation and state-run financial institutions, including the Export-Import Bank of Korea, Korea Development Bank and Korea Trade Insurance Corp., will provide financing for investments in U.S. shipyards and vessel construction projects.

Industry officials said the center represents a shift from government-level pledges to the development of specific commercial projects, with South Korean strengths in ship design, production management and smart shipyard technology supporting U.S. shipyard modernization while creating opportunities in workforce training and equipment supply. They cautioned that the number of agreements signed will be less important than the volume of actual orders and investments they produce.

The pace of shipyard investment will depend on how the $150 billion financing package is structured and what conditions are attached to it, officials said. Other unresolved questions include how much work can be awarded to South Korean shipbuilders, how investment responsibilities will be divided between companies and state financial institutions and whether U.S. regulations and domestic-content requirements will be eased. U.S. requests for information on combat vessels and military support ships have raised expectations for future cooperation, but industry officials said the center must establish itself as a business development organization connecting the U.S. government, Congress, ship purchasers and local shipyards.