Posted on August 18, 2025
A U.S. think tank says South Korea and the U.S. can collaborate in shipbuilding through maintenance contracts, shipyard acquisitions, joint construction, and other forms of cooperation.
South Korea proposed the “MASGA” (Make America Shipbuilding Great Again) project during a tariff deal with the U.S. on July 31. The multi-trillion-won plan aims to revitalize the U.S. shipbuilding industry and could be a key topic at the South Korea-U.S. summit on Aug. 25.
Industry sources on Aug. 19 said the Center for Strategic and International Studies (CSIS) has outlined practical ways for the U.S. to work with Northeast Asian allies on shipbuilding. In its May report, “Identifying Pathways for U.S. Shipbuilding Cooperation with Northeast Asian Allies,” CSIS pointed to four approaches as the most feasible, based on public discussion, U.S. policies like the Regional Sustainment Framework, and interviews with industry and government officials over the past year.
The report singled out South Korea and Japan as key partners, with South Korea receiving particularly positive attention. The report outlines four main cooperation paths: allied maintenance, repair, and overhaul (MRO) of U.S. ships; allied acquisition of U.S. shipyards; joint warship production; and U.S. purchase of warships built at allied shipyards.
A red cap featuring the “MASGA” logo
Contracting allied maintenance, repair, and overhaul (MRO) of U.S. ships is seen as a practical way to strengthen supply chains and make strategic use of ports. CSIS noted that MRO cooperation with South Korea and Japan is not new, citing last year’s contracts won by Hanwha Ocean and HD Hyundai’s maintenance agreement with the U.S. Navy.
Allowing allied countries to acquire U.S. shipyards could bring foreign shipbuilding technology and expertise into the U.S. Options include military or commercial acquisitions, government-owned–contractor-operated (GOCO) arrangements, and joint ventures. CSIS said these initiatives could improve productivity, enhance workforce skills, and lower costs through bulk procurement of materials.
Joint warship construction could rely on modular assembly, such as building hulls abroad and integrating weapons and propulsion systems in U.S. shipyards. Allied companies could supply parts and labor from both domestic and overseas sources.
Finally, the U.S. Navy could purchase ships built at allied shipyards. This could involve building ships abroad using U.S. designs, jointly designing ships with allies, or allowing allies to handle both design and construction. CSIS noted this approach is the most challenging due to U.S. protectionist policies.
The report concludes that the U.S. must find the right balance between relying on allies and investing in its own shipbuilding capabilities.
